A Japanese foreign ministry official used slush fund money to
finance the extra-marital activities of himself and many of his
colleagues - often in posh hotel suites. But this was no exception.
According to Asahi Shimbun, more than half of the 60 divisions of
the ministry maintained similar funds. The police and the ministry
are investigating. One arrest has been made. The ministry's
accounting division has discovered these corrupt practices twenty
years ago but kept mum.
Even low-level prefectural bureaucrats and teachers in Japan build
up slush funds by faking business trips or padding invoices and
receipts. Japanese citizens' groups conservatively estimated that
$20 million in travel and entertainment expenses in the prefectures
in 1994 were faked, a practice known as "kara shutcho" (i.e., empty
business trip).
Officials of the Hokkaido Board of Education admitted to the
existence of a 100 million yen secret fund. In a resulting probe,
200 out of 286 schools were found to maintain their own slush funds.
Some of the money was used to support friendly politicians.
But slush funds are not a sovereign prerogative. Multinationals,
banks, corporation, religious organizations, political parties, and
even NGO's salt away some of their revenues and profits in
undisclosed accounts, usually in off-shore havens.
Secret election campaign slush funds are a fixture in American
politics. A 2-year old bill requires disclosure of donors to such
funds but the House is busy loosening its provisions. "The
Economist" listed lately the tsunami of scandals that engulfs
Germany, both its major political parties, many of the Lander and
numerous highly placed and mid-level bureaucrats. Secret, mainly
party, funds seem to be involved in the majority of these lurid
affairs.
Italian firms made donations to political parties through slush
funds, though corporate donations - providing they are transparent -
are perfectly legal in Italy. Both the right and, to a lesser
extent, the left in France are said to have managed enormous
political slush funds.
President Chirac is accused of having abused for his personal
pleasure, one such municipal fund in Paris, when he was its mayor.
But the funds were mostly used to provide party activists with mock
jobs. Corporations paid kickbacks to obtain public works or local
building permits. Ostensibly, they were paying for sham "consultancy
services".
The epidemic hasn't skipped even staid Ottawa. Its Chief Electoral
Officer told Sun Media last September that he is "concerned" about
millions stashed away by Liberal candidates. Sundry ministers who
coveted the prime minister's job, have raised funds covertly and
probably illegally.
Public-domain text, read in full here on John Shaqi.
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