Millions flow into state coffers: how Switzerland benefits from corrupt companies

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If corrupt officials steal illegally obtained money somewhere in the world and take it to a Swiss bank, it could end up in the Swiss treasury. This is when the local judiciary confiscates it but does not return it to its country of origin.

Switzerland has benefited more from such money in recent years than ever before, reports the “Tagesanzeiger”. Between 2018 and 2022, the federal government received R437 million from money raised in criminal or legal aid proceedings. In the previous period this was seven times less.

As an example, the “Tagesanzeiger” mentions a huge corruption case in Malaysia, in which several billions were stolen from the local state investment fund. It is said that 70 million francs have flowed into the Swiss national budget.

The cantons and the federal government benefit from the funds

Switzerland also benefits from the illegal activities of Swiss companies abroad: If a company in Switzerland is convicted of corruption and therefore has to forfeit profits or pay a fine, this also flows into the coffers of Finance Minister Karin Keller-Sutter (60). ). For example, if a Swiss company bribes officials abroad, the sentence will not be served abroad.

Last year, the Federal Public Prosecution Service convicted the Swiss security technology company Sicpa for corruption in Brazil, Colombia and Venezuela. Switzerland benefited from the compensation claim of 81 million francs. The same happened with the 94 million francs that the Geneva oil company Gunvor had to hand over in 2019 after a conviction for corruption in the Republic of Congo and Ivory Coast.

In addition to the federal treasury, the cantons also benefit from the funds. The federal government and the cantons share them among themselves. According to the “Tagesanzeiger”, the canton of Zurich would have received an income of approximately 32 million francs between 2018 and 2022.

The Federal Council is reconsidering its approach

There are mechanisms through which Switzerland can repay the blocked funds. However, for this to happen, certain conditions must be met. For example, the country of origin must conduct its own investigation or support the Swiss criminal proceedings. Moreover, the funds must have been stolen by foreign, politically exposed persons. That is why Switzerland, for example, repaid more than R300 million to Nigeria in 2017.

In 2019, a majority in the Council of States demanded that the Federal Council explain how the legal basis could be amended to make it easier to return the confiscated funds abroad. Apparently this report will be published in the coming months. (she)

Source:Blick