April, 22 2021, 12:00am EDT
For Immediate Release
Contact:
David Turnbull, david@priceofoil.org, +1 202 316 3499 (United States)
Collin Rees, collin@priceofoil.org, +1 308 293 3159 (United States)
Laurie Van der Burg, laurie@priceofoil.org (Belgium)
Romain Ioualalen, romain@priceofoil.org (France)
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Oil Change International Response to Leaders Climate Summit
Today, world leaders have gathered virtually at a so-called "Leaders Summit on Climate" hosted by the Biden administration. These leaders provided statements and commitments to increase ambition on global climate action. With a few notable exceptions, however, largely absent from the discussions were commitments to a managed ramp-down of fossil fuel production, though some progress was made on shifting public finance out of fossil fuels and into clean. In response, Oil Change International experts provided the following statements:
WASHINGTON
Today, world leaders have gathered virtually at a so-called "Leaders Summit on Climate" hosted by the Biden administration. These leaders provided statements and commitments to increase ambition on global climate action. With a few notable exceptions, however, largely absent from the discussions were commitments to a managed ramp-down of fossil fuel production, though some progress was made on shifting public finance out of fossil fuels and into clean. In response, Oil Change International experts provided the following statements:
David Turnbull, Strategic Communications Director:
"True climate leadership requires a full reckoning with the realities of what's driving our climate crisis: fossil fuels. Without a robust plan from rich countries in particular to ramp down fossil fuel production and ramp up support for communities for a just transition to a renewable energy economy, any conversation about 'climate leadership' is incomplete at best, or misleading at worst. We're pleased to hear countries recommit to the 1.5oC Paris goal and ramp up their emission reduction commitments, however we are gravely concerned after today's statements that there is still limited willingness to actually stop digging the climate hole we find ourselves in.
"Continued fossil fuel production impacts those on the frontlines of extraction and related infrastructure every day, adding to the historic injustices our extractive economy has perpetuated. Today's session on ramping up ambition came up short, and we call on all world leaders to quickly catch up to the reality that we must stop spending public money on fossil fuels and start the fossil fuel production phase out and just transition for communities immediately."
Laurie van der Burg, Senior Campaigner:
"A bright spot of the climate summit is that it reconfirmed the momentum that is building on shifting public finance out of fossil fuels and into clean. Korea announced an end to coal financing, and, though woefully incomplete, the US reiterated it is taking steps towards ending overseas finance for fossil fuels. This follows the UK putting an immediate halt to new finance for fossil fuel projects overseas, not just coal, but also oil and gas, last month."
"As COP26 host and president of the upcoming G7 and having acted on this agenda itself, the UK is uniquely positioned to prioritize making 2021 the year in which the public finance balance tips from fossils to clean. It must encourage other governments to follow its example by the G7 to keep the ball rolling towards COP26."
Collin Rees, Senior Campaigner:
"Today's announcements from the Biden Administration were a welcome change from the Trump era, but they laid bare how important tackling fossil fuels will be to restore U.S. climate leadership on the global stage and end environmental injustice. President Biden must follow through on his pledges to end fossil fuel subsidies and move swiftly to end overseas public finance for fossil fuels, an area in which the U.S. risks falling drastically behind its peers. Biden has made some good first steps by rejecting the Keystone XL pipeline and pausing oil and gas leasing on public lands, but much more must be done to limit the expansion of the oil and gas industry. New decarbonization goals are difficult to take seriously until Biden takes immediate action to stop the Line 3 and Dakota Access oil pipelines and lays out a credible plan to ramp down fossil fuel production here at home."
Romain Ioualalen, Senior Campaigner:
"Today, the leaders of the world met to tout their climate action while presiding over the second largest increase in CO2 emissions in history. This disconnect between pledges and actions is the reason why we are failing to address the climate crisis. It is urgent for so-called climate leaders in the US, Canada, Norway and the UK to enact policies to phase out their production of fossil fuels, and to follow the example of countries such as Denmark and Costa Rica that have banned new oil and gas exploration and production. Distant carbon neutrality pledges and revised NDCs will continue to ring hollow as long as countries fail to address the root of the climate crisis: our continued reliance on fossil fuels."
Oil Change International is a research, communications, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the ongoing transition to clean energy.
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Corporate Prosecutions Up Under Biden, Says Watchdog, But Not Nearly Enough
"The increase in corporate prosecutions is a welcome shift from the previous decline, and the new policy of rewarding corporate crime whistleblowers could go further toward restoring enforcement."
Mar 25, 2024
While welcoming a "modest uptick" in corporate prosecutions by the U.S. Department of Justice last year, the watchdog Public Citizen on Monday called for the "bold ramp-up Biden DOJ leadership promised early in the administration."
Federal prosecutions of corporations over the past 25 years peaked in 2000, at 304, according to the organization's analysis of various datasets. After the turn of the century, figures trended down, with a low of 90 in 2021, the year that President Joe Biden was sworn in. Since then, the numbers have started to climb again—hitting 99 in 2022 and 113 in 2023.
However, the impact isn't felt equally across the corporate world. Last year, "about 76% of the corporations DOJ prosecuted had only 50 employees or less, while only about 12% had 1,000 employees or more," the report states. "This is the continuation of a long-standing trend—about 70% of the 4,946 corporations the federal government prosecuted between 1992 and 2021 were small businesses with fewer than 50 employees. Only about 6% employed 1,000 or more."
"Prosecutions remain far too few, and the ongoing overuse of leniency deals for big corporations that break the law continues to undermine deterrence."
Still, "the increase in corporate prosecutions is a welcome shift from the previous decline, and the new policy of rewarding corporate crime whistleblowers could go further toward restoring enforcement," said Rick Claypool, a Public Citizen research director who authored the report, in a statement Monday.
Deputy Attorney General Lisa Monaco announced the "DOJ-run whistleblower rewards program," through which an individual who helps the department discover "significant corporate or financial misconduct" could receive some of the forfeiture, in a speech to the American Bar Association's 39th National Institute on White Collar Crime earlier this month.
Although Claypool applauded the progress, he also emphasized that "prosecutions remain far too few, and the ongoing overuse of leniency deals for big corporations that break the law continues to undermine deterrence."
The report explains that "prosecutors use DOJ leniency agreements—deferred prosecution agreements (DPAs) and nonprosecution agreements (NPAs)—to avoid filing criminal charges against corporate defendants. Originally developed to offer nonviolent first-time individual offenders a second chance, such agreements now help the most powerful businesses in the world dodge the legal consequences of their criminal misconduct."
Previous Public Citizen research shows that "about 15% of the agreements historically involve repeat offenders, casting doubt on their deterrent effect," the report notes. "Most corporate repeat offenders that receive leniency agreements from the Department of Justice are large multinationals. Of the 14 corporations that received leniency deals in 2023, the majority (10, or 71%) had at least 5,000 employees or more."
Of those who took deals last year, the watchdog highlighted "generic pharmaceutical companies Teva and Glenmark, multinational tobacco corporation British American Tobacco, the Illinois subsidiary of telecommunications corporation AT&T, and the Swiss multinational technology firm ABB."
While calling out the DOJ for creating "the appearance that some businesses are 'too big to jail'" with its leniency agreements, Public Citizen also lauded Monaco's recent remarks about "delivering consequences for corporate recidivists."
"A history of misconduct matters," she said during the early March address. "After all, penalties exist, in part, to deter future misconduct. They're not the cost of doing business. So when a company breaks the law again—and it's clear the message wasn't received—we need to ratchet up the sanctions."
As the report details:
The first example Monaco provides of the Justice Department holding corporate repeat offenders accountable is Ericsson. Ericsson breached its 2019 leniency agreement with the DOJ to resolve allegations of criminal violations of the Foreign Corrupt Practices Act in Djibouti, China, Vietnam, Indonesia, and Kuwait. Following the breach—failing to meet cooperation and disclosure requirements—the DOJ subsequently prosecuted the corporation for its misconduct.
Other major corporations that have been prosecuted after breaching leniency agreements include the multinational agrichemical corporation Monsanto and the financial corporation formerly known as Royal Bank of Scotland, NatWest Group, which reportedly rebranded in part to dissociate itself from its past misconduct.
"The DOJ's fresh willingness to hold corporate offenders accountable for leniency agreement breaches is among the strongest and most necessary corporate accountability reforms implemented by the Biden administration," the report says. "It's also one that is currently facing its greatest test: Boeing."
Boeing entered into DPA in 2021, after a pair of deadly 737 MAX 8 jet crashes in 2018 and 2019. In January, a door plug flew off a 737 MAX 9 during a flight, resulting in an emergency landing and fresh scrutiny—including a DOJ criminal investigation.
In a February letter to DOJ leaders including Monaco and Attorney General Merrick Garland, Weissman wrote that "if the DOJ finds that Boeing again violated the law, Boeing should be prosecuted both for its original and its subsequent misconduct."
As Common Dreamsreported earlier Monday, Boeing announced that its commercial airplanes division leader will leave immediately, the chairman of the board will resign after the annual meeting in May, and the CEO will step down at the end of this year.
"Of course CEO Dave Calhoun should be dismissed," responded Weissman. "But for real and lasting change to occur, Boeing must now be held criminally accountable both for the recent safety failures and the... crashes that took 346 lives."
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Boeing CEO's Voluntary Departure Is Not Accountability for Corporate Crime: Watchdog
"For real and lasting change to occur," said Public Citizen's Robert Weissman, "Boeing must now be held criminally accountable."
Mar 25, 2024
Embroiled once again in an alarming quality control and safety scandal, the aircraft manufacturing giant Boeing on Monday announced a management shake-up that will see CEO Dave Calhoun step down at the end of the year, the head of the company's commercial airplanes division resign immediately, and the chairman of the board depart after Boeing's annual meeting in May.
Calhoun, who said he decided on his own to resign, took charge at Boeing in the midst of the company's previous high-profile crisis—the grounding of the 737 MAX jet following a pair of crashes in 2018 and 2019 that killed more than 340 people.
Robert Weissman, president of the consumer advocacy group Public Citizen, said in response to the news of Calhoun's coming departure that "if Boeing had been held criminally accountable after the... 737 MAX disasters, the more recent quality debacles quite likely could have been averted."
Earlier this year, a door plug of a Boeing 737 MAX 9 flew off the aircraft as it ascended, causing minor injuries and forcing the pilots to conduct an emergency landing. More than MAX 9s were subsequently grounded to undergo inspections.
The incident prompted federal regulators, airlines, and journalists to—once again—closely scrutinize Boeing's manufacturing process, cost-cutting efforts, lobbying against safety regulations, and executive and shareholder payouts.
The Leverreported days after the January 5 incident that "less than a month before a catastrophic aircraft failure prompted the grounding of more than 150 of Boeing's commercial aircraft, documents were filed in federal court alleging that former employees at the company's subcontractor repeatedly warned corporate officials about safety problems and were told to falsify records."
The outlet also found that "operators of Boeing's troubled 737 MAX planes have filed more than 1,800 service difficulty reports—more than one per day—warning government regulators about safety problems with the aircraft since the fleet was allowed to resume flying after two fatal crashes."
Alaska Airlines, the operator of the January 5 flight, said in late January that it found loose bolts on "many" of Boeing's 737 MAX 9s.
"The FAA identified noncompliance issues in Boeing's manufacturing process control, parts handling and storage, and product control."
In an update published on March 4, the Federal Aviation Administration (FAA) said its six-week audit of Boeing and Spirit AeroSystems—a major Boeing contractor—uncovered "multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements."
"The FAA identified noncompliance issues in Boeing's manufacturing process control, parts handling and storage, and product control," the agency said. "To hold Boeing accountable for its production quality issues, the FAA has halted production expansion of the Boeing 737 MAX, is exploring the use of a third party to conduct independent reviews of quality systems, and will continue its increased onsite presence at Boeing's facility in Renton, Washington, and Spirit AeroSystems' facility in Wichita, Kansas."
Earlier this month, days after the FAA update was published, a Boeing whistleblower who raised concerns about the company's quality control practices was found dead of what local officials said appeared to be a self-inflicted gunshot wound.
Weissman of Public Citizen said Monday that "of course CEO Dave Calhoun should be dismissed" over the company's latest safety crisis.
"But for real and lasting change to occur," he argued, "Boeing must now be held criminally accountable both for the recent safety failures and the... crashes that took 346 lives."
In 2021, Boeing entered into a deferred prosecution agreement with the U.S. Justice Department to avoid a criminal charge over an alleged conspiracy to defraud the FAA in the wake of the 2018 and 2019 crashes.
Public Citizen noted in a report published Monday that "such agreements now help the most powerful businesses in the world dodge the legal consequences of their criminal misconduct."
"Instead of facing prosecution—which would mean plea agreements or trial in a public court of law—leniency deals are negotiated quietly between prosecutors and corporate lawyers with little or no judicial oversight," the group said. "Proponents say the agreements are a streamlined way to effectively deter corporate crime. Public Citizen research, however, shows about 15% of the agreements historically involve repeat offenders, casting doubt on their deterrent effect."
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NY Appeals Court Delivers Reprieve for Trump on $454 Million Bond
"They sure let him twist in the wind until the last moment," said one legal expert.
Mar 25, 2024
As the deadline arrived Monday for Donald Trump to pay a $454 million bond following a New York judge's ruling that the former Republican president and his company committed fraud, an appeals court in the state ruled that Trump would be permitted to post a vastly reduced amount.
The appeals court panel said the presumptive 2024 GOP presidential nominee could pay $175 million after the former president indicated he was unable to pay the full amount, having sought the bond from more than two dozen surety companies.
New York Attorney General Letitia James indicated earlier this month that she could begin seizing Trump's assets as soon as Monday if he was unable to pay the $454 million judgment.
Trump was hit with the fine as the result of James' civil fraud case against the former president and his real estate company, the Trump Organization. Judge Arthur Engoron found Trump and the firm had committed "repeated and persistent fraud," including by falsifying financial statements by as much as $2.2 billion.
The former president is appealing the ruling and had looked for companies to guarantee the full amount of the bond in the event that he lost the appeal, but with much of his fortune tied up in his properties, he was unable to come up with the collateral demanded by the institutions.
Trump said Monday that he plans to "post either a bond, equivalent securities, or cash" within the 10 days granted by the appeals court in order to delay enforcement of the full fine.
Former U.S. Attorney Harry Litman, now a senior legal affairs columnist for the Los Angeles Times, said the "pro-business" appellate court's decision was not surprising and was "reasonable," considering that "a bond is designed to secure eventual payment, not to financially wreck the defendant."
"In a sense the decision reducing Trump's bond and giving him more time is consistent with the 'treat Trump like any other litigant' credo," said Litman, "but they sure let him twist in the wind until the last moment."
James' office responded to the appeals court's decision by focusing on the fact that the full judgment against Trump, his sons Eric Trump and Donald Trump Jr., and former executive Allen Weisselberg still stands.
"Donald Trump is still facing accountability for his staggering fraud," said a spokesperson for James. "The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization."
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