Printer Friendly
The Free Library
14,581,586 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

No to taxfree backhanders: when Norwegian doctor Sturla Johnson discovered that bribery was tax deductible, he felt he had to do something.


Until 1980 corruption was not much discussed in the Scandinavian countries. There were occasional reports such as the Bofors scandal The Bofors Scandal was a major corruption scandal in India in the 1980s; the then Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Bofors AB for winning a bid to supply India's 155 mm field howitzer. , when a Swedish arms manufacturer Noun 1. arms manufacturer - someone who manufactures arms and munitions
producer, manufacturer - someone who manufactures something
 paid around US$200 million in bribes to get contracts in India. But most people thought corruption was something that happened in other parts of the world and Scandinavia's hands were fairly clean.

At the height of the 1980s oil exploration in the North Sea, cases of Norwegian exporters paying large bribes began to come to light. An executive in the Norwegian state oil company was convicted after having accepted bribes from a German steel pipe manufacturer.

In 1988 the press reported that the Norwegian authorities were giving tax deductions on bribes Norwegian companies This is a list of Norwegian companies operating as of 2004, and historical companies. Operating
  • 24SevenOffice, web-based ERP/CRM software.
  • Advista AS, IT solutions and development of directories
  • Aker Kværner, offshore industry, shipyards, oil and gas
 had paid in developing countries. The argument was that, as bribery was `unavoidable' and `part of the culture' in some countries, payments used to obtain contracts should be regarded as regular expenses. This information made me really angry and I remember thinking: `This has gone too far. I must do something.' I wrote a strong letter of protest to the Norwegian Minister of Finance. Four of my friends, who like me had worked in developing countries, also signed the letter. We stated that bribery was totally unacceptable and that to make it tax deductible was to condone an immoral and harmful practice. The Minister replied that he would look into the matter.

At just that time, unknown to me, Norwegian State Television (NRK NRK Norsk Rikskringkasting (Norwegian State Norwegian Broadcasting Corporation)
NRK Norsk Retrieverklubb (Norwegian Retriever Association)
NRK Norsk Røde Kors (Norwegian Red Cross) 
) was setting up a TV panel discussion on bribery and was looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 a participant who would speak against it. The Finance Ministry gave them my name and they got in touch with me. I agreed to take part and suggested that the programme should also include someone from Africa. The producer arranged an interview with a Nigerian friend of mine who was visiting Oslo, and this appeared as part of the one-hour programme.

The members of the panel were the Director of Taxation, four prominent businessmen, a politician and me. The programme revealed some shocking attitudes and business practices, and I found myself almost alone in rejecting bribery. Over the following days there was a lot of media interest and the matter was taken up in a parliamentary question to the Minister of Finance. A few weeks later, he announced that he was ending tax deduction for bribes and this became law two years later. Denmark introduced similar legislation in 1998 and Sweden followed suit in 1999.

In recent years there have been important developments on the international level, which suggest a change of attitude towards corruption. In 1993 the Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development (OECD), international organization that came into being in 1961. It superseded the Organization for European Economic Cooperation, which had been founded in 1948 to coordinate the Marshall Plan for European  (OECD OECD: see Organization for Economic Cooperation and Development. ) asked member states to stop tax deduction for bribes, and a working committee of the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the

European Community
 has made a similar recommendation. In 1999 an OECD Convention made bribery a criminal offence, and the European Council European Council, a consultative branch of the governing body of the European Union (EU). It is composed of the heads of government of the EU nations and their foreign ministers, in conjunction with the president and two additional members from the European  has also prohibited it. For the last 20 years, American companies who pay bribes in foreign countries have been liable to criminal prosecution.

The World Bank has also joined the battle. In its 1997 World Development Report it concluded that corruption blocks development in poor countries. For instance, it stated, corruption makes the judiciary unpredictable, skews recruitment towards connections rather than qualifications and twists political decisions.

Transparency International Transparency International (TI) is a leading international non-governmental organization addressing corruption. This includes, but is not limited to, political corruption.  (TI), an NGO NGO
abbr.
nongovernmental organization

Noun 1. NGO - an organization that is not part of the local or state or federal government
nongovernmental organization
 founded in Germany in 1993, now has chapters in 77 countries and keeps a close watch on corruption worldwide. In 1999, the Norwegian Minister of Development Aid and Human Rights, Hilde Frafjord Johnson Hilde Frafjord Johnson (born August 29, 1963 in Arusha, Tanzania) is a Norwegian politician from the Christian Democratic Party. She is a former Minister of International Development in the Norwegian Ministry of Foreign Affairs, and member of the Norwegian Government. , announced that her government wanted to cooperate closely with TI and that in the future Norwegian aid would be conditional on recipient countries tackling corruption effectively. `Corruption is one of the most formidable blocks to development,' she said.

I believe that laws and conventions are essential but not enough. Each of us can find ourselves in situations where there is a danger of being bought. For instance, on one occasion a computer salesman offered me a gift of software as he was leaving my office. I was tempted to accept, because it was something I badly needed for my own computer. But in the end I refused. The man was hoping to sell personal computers to the people working in my department. Saying no freed my hands to choose the supplier who gave us the best offer.

As a doctor, I am conscious that at times the relationship between my profession and the pharmaceutical industry has been too close. The industry sponsors medical meetings which are important to us doctors. On our side, our choice of the drugs we prescribe to our patients affects the industry's profits. The industry has tried to influence us by offering us trips, expensive dinners and books, and we have happily accepted.

In 1998, the Norwegian Medical Association The Norwegian Medical Association (in Norwegian, Den norske lægeforening, from 2007 Den norske legeforening) was founded in 1886. It has more than 22,000 members, or about 94 % of all Norwegian doctors. Torunn Janbu is the current president of the association.  and the pharmaceutical industry got together to straighten things out. Certain doubtful practices were stopped and things are now in the open. These days, when the pharmaceutical industry sends out invitations to lectures and seminars, they are accompanied by a standard letter stating clearly what is and is not included.
COPYRIGHT 2001 For A Change
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Author:Johnson, Sturla
Publication:For A Change
Date:Jun 1, 2001
Words:843
Previous Article:Dealing with depression: John Lester, a medical doctor, dispels some of the myths surrounding depression - and looks at some of the issues that...
Next Article:Clearing the picture: (Jim Sharp invents a process to enhance picture reproduction in newspapers).
Topics:



Related Articles
Sullied hands and sweetheart deals. (corrupt business practices in Asia)(Market Horizons)
Militant for mother's milk: Raj Anand knows the formula to save 1.5 million babies' lives a year - and it doesn't come out of a tin.
Tanzania tackles corruption.
Who Should Be President?(Brief Article)
A Long Road Home.
Welcome to 'Tort Hell' - West Virginia, that is. A 'doctors crisis'.(doctor shortage in state caused by legal atmosphere)
DODGERS NOTEBOOK: JOHNSON BACK, HAS RESTRAINTS.(Sports)
THERE'S ANOTHER HEALTH CARE OPTION MEDICAL SAVINGS ACCOUNTS OFFER AFFORDABLE ALTERNATIVE TO HMOS.(Viewpoint)
2 great tax strategies many overlook.
Consumer-directed health care: a panacea or the wrong prescription?

Terms of use | Copyright © 2009 Farlex, Inc. | Feedback | For webmasters | Submit articles