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BRIBERY

Riksdag ‘burger bribe’ reported to police

Swedish hamburger chain Max has been reported to police on suspicions of trying to bribe members of parliament by sending them a gift card along with an invitation to come eat at the popular fast food restaurant.

Riksdag 'burger bribe' reported to police

“We think that lowering the value-added tax paid by restaurants is an appropriate measure,” wrote Max in a letter sent to each of the Riksdag’s 349 members, along with a gift certificate worth 100 kronor ($15).

But the move was met with criticism from several MPs.

“It seems like a clumsy attempt to try to buy sympathy among members of the Riksdag. It’s extremely upsetting,” Left Party MP Jens Holm told the TT news agency.

Now the campaign has been reported to police.

In the letter, Max CEO Richard Bergfors expressed his regret that the Riksdag’s own restaurant had opted not to lower its prices in the wake of a lowering of the value-added tax paid by restaurants from 25 percent to 12 percent, which took effect at the turn of the year.

He goes on to suggest hungry MPs to come eat at Max instead.

“For us at Max, it’s obvious that we should give the amount of the reduced value-added tax back to customers through lower prices,” he wrote.

According to Bergfors, Max expects to give 140 million kronor back to customers via reduced prices and to add 150 to 250 new jobs to deal with the expected increase in demand as a result of the tax reduction.

“A restaurant job is often a young person’s first step into the job market and that’s why the reform is important,” he wrote.

Social Democrat MP Eva-Lena Jansson plans on sending the gift certificate back to Max.

“I don’t think we’re the ones that need this gift certificate,” she told TT.

“I voted against the reduction because I think the money should instead have been used for education and labour market policies.”

Even the Moderate Party, a primary backer of the measure, has urged its MPs to refrain from using the gift card.

“We don’t think these sort of gifts are appropriate even if the amount is rather small,” Moderate spokesperson Petter Larsson told TT.

Left Party MP Ulla Andersson has reported the campaign to police, telling the lobbying trade publication Dagensopinion.se that the gift cards “crossed the line”.

According to Max’s Bergfors, however, the thought never occurred to him that the PR stunt of sending gift cards to sitting members of parliaments could be interpreted as a bribery attempt.

An unapologetic Bergfors told the advertising trade publication Resume that the criticism was “ridiculous”, adding “it remains to be seen” if the campaign succeeds.

“The gift card was included with a letter with the message that the reduction of value-added tax for restaurants is very positive,” he told Resume.

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BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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