Week 07 Hand-in Assignment Hand-in Assignment 4 This week you have considered many categories of corruption and the

possible effects that corruption has on developing countries from a theoretical perspective. While this is appropriate for this module to deal mostly with theory, it is important for your ability to practice in this area that you understand concrete examples of the damage that corruption can do in a developing country. For this assignment, research and analyse a specific case of corruption in a developing country, assess the actual and potential effect of the corruption on that country, and evaluate the potential benefits of using AML as a method for combating that type of corruption. _________________________________________________________

Colombia is known for its corruption but no case had ever been so disgraceful and expensive as that of the Mayor of Bogota, Samuel Moreno. The scandal appropriately named the carrusel de la contratacion (contracting carrousel) started when the Mayor promised a set of civil works contracts to the Nule brothers construction company in exchange for campaign support in 2007. [@] Once Moreno became Mayor he then approved the contracts and then demanded 6% of the government appropriated funds to the Nule brothers. Moreno has been banned from ever running for public office again and has been charged with embellishment, fraud, and extortion of government money. Moreno was the first Mayor of the capital to be jailed by his people.

Formatted: Justified

Comment [SL1]: His brother was a senator o Colombia, and is currently in jail due to illegal adjudications of contracts Comment [SL2]: Also named cartel de la contratacin

Comment [SL3]: His election was very scandalous during the debate. During the last debate one candidate ask him would u buy 50 votes and save the city from someone who boug 50.000 votes? he answered indeed I would

The expense of the scandal is over 5100 million dollars to the city of Bogota The public transportation Transmilenio which was scheduled to be significantly expanded was stopped dead in its tracks and still has not reach its intended destination. Paradoxically, Moreno secured the countrys most important executive office; second only to the President, by vowing to construct the much needed and long awaited mass transit system.. The transfer of the Transmilenio contract to Vias

Comment [SL4]: Calle 26 one of the most important streets of Colombia was stopped during this, and only reopend a few months ago causing chaos in transportation

Comment [SL5]: He is currentlybeen investigated for money loss in the study of the construction of Bogotas metros

Bogota cost the city $119 million dollars. [#] The extreme gridlock, delays, and loss of ability to fix other parts of the city due to lack of funds and people has made the citizens disappointed and irate in their government. <<<< need to put something about how anti money laundering laws or controls could have stopped this scandal>>>> The result of the carusel contratacion is not only a financial burden on the community but the progress in violence and the political mindset of the people has changed back to the extremist left-wing side. Gustvao Petro, who was once an organizer of the M- 19 guerrillas, concentrated his campaign on the fight against corruption. The irony is that the people of Bogota were once fleeing their city because of the war against the guerillas and now they voted for one to be their leader. It has been rumored that Petro will use the Mayors office as a platform to reach Presidency. However, the crime and traffic, which is what Petros platform for running for Mayor was, has increased dramatically. The annual city government survey of whether or not the city is headed in the right direction has fallen by 50% since Petro has taken office. [%] In 2007, President Uribe called Petro a terrorist in civilian clothing [%]
Comment [SL6]: Bebe in Colombia we have the ley 80, in this law its very well established how public contracts must be negotiated. But I guess a more strict use of the money would be helpful

Comment [SL7]: His government has only focused for social and lower estratos, pero ha descuidado al norte y mejores estratos de bogot

Comment [SL8]: He ran to be president of Bogota after he went well as candidate for the presidency of Colombia

[@]http://www.americasquarterly.org/node/2891