Ethics and governance in the European Financial centers

Richard Murphy published a letter from Prof. Dr. Johann Graf Lambsdorff to Transparency International.

Who is he?

He is the one that designed the CPI (Corruption Perception Index) in 1995.

What does he state?

He states that he is no longer available for doing the Corruption Perceptions Index.

Why?

By inviting TI to start anew to educate TI-S to deliver an acceptable product, he admits the CPI is no longer an acceptable product.

As Richard said, for three years Tax Justice Network has been a significant critic of Transparency International’s Corruption Perception Index (CPI). The CPI is not even a true index: it is opinion. It is not factually based: it is perception. It is inherently biased as a result. The results cannot be reproduced. Source data cannot be checked.

It is easy to create a good perception when issues are denied or hushep up.

Last year I demonstrated blatant inconcistencies by observing what is going on in Luxembourg whereas the jurisdiction communicates on its good rank (Cf. Government and ABBL)

In the recent history,

-         Luxembourg was the only EU State member unable to provide data on corruption for the follow up of the OECD Anti-bribery Convention by TI,

-         Luxembourg is the only jurisdiction that deny the right for NGOs to to their job of watchdog,

-         Luxembourg did not enforce the criminal liability for legal persons despite an injunction last year (Working Group on Bribery) and this year (Mark Pieth on behalf of the OECD’s Working group on Bribery).

The Tax Justice Network will launch the Financial Secrecy Index in October.