Welcome!

@CloudExpo Authors: Yeshim Deniz, Elizabeth White, Pat Romanski, Liz McMillan, Zakia Bouachraoui

Related Topics: @CloudExpo, Containers Expo Blog, Agile Computing

@CloudExpo: Blog Post

Chinese Corruption Crackdown Spreads

Companies with Business Relationships with Chinese Government Officials Need to be Increasingly Vigilant

Cloud Expo Hong Kong

Cloud Computing Expo - With the news that Chinese graft-busters have targeted officials in the Guangdong city of Maoming in their on-going anti-corruption drive, foreign businesses operating in China need to reassess their dealings with government officials to identify whether they have been involved in activities that could be perceived as bribery and put a stop to it, says The Red Flag Group.

In recent years, Chinese efforts to crackdown on corruption among government officials have mainly focused on the so-called first-tiered cities. This included the sentencing in 2008 of Chen Liangyu, Shanghai's former communist party chief, and the dismissal of XuZhongheng, a former major of Shenzhen, both for bribery.

However, in a sign that the crackdown is turning towards emerging tier two cities, Chinese language media have reported that officials in the city of Maoming are being investigated for corruption. They include Yang Guangliang, Maoming's vice-mayor, who was placed under detention by the Central Commission for Discipline Inspection last October. Also targeted was Cheng Bin, the police chief of Maoming Public Security Bureau, and Yang Qiang, director of Maoming's Maogang district police bureau.

This followed other tier two city officials who have been recently netted by Chinese graft-busters, such as Chen Xizhao, deputy chief of police in the Guangdong city of Lianjiang, who was fired after it was reported that he invited 1,000 guests to a Christmas party at his residence. Also, Ye Shuyang, a former police chief in the city of Shaoguan, was arrested in 2008 and is set to stand trial for accepting more than 30 million yuan in bribes over a period of 20 years.

"Whereas previously, China's anti-corruption drive have mainly been focused in the largest cities such as Guangzhou and Shenzhen, what we are seeing now is the effort moving towards normally less high profile places such as Maoming," said Scott Lane, Principal and CEO of The Red Flag Group.

"What this means is that now more than ever, companies not only need to proactively assess business they have done with Chinese officials in the past, but also with any officials with whom they have established any sort of relationship, regardless of whether money has ever changed hands," Lane said, adding that it was important to identify activities that may have supported bribery. Companies need to analyze the different transactions that have taken place, whether they are deals, the use of third parties, or giving gifts or lavish entertainment to officials.

"In a country where the provision of gifts and lavish meals is a routine part of the business dealings, companies more than ever need to make sure they can keep track of and maintain thorough records of all gifts, entertainment and travel it provides to business relationships. It is only then that managers can have the information they need to spot red flags early, and prevent activity from occurring that incurs the full wrath of Chinese fraud investigators," Lane added.

"A company's compliance personnel should be able to use software, such as our ComplianceDesktop Gift and Benefits Tool, to make queries. They should be able to type in the names of the officials, and see whether any gifts or entertainment had been provided to the said officials, along with details such as what they were, the cost, when it was given, and whether there were any special circumstances," he said.

Requiring installation of no new hardware or software, the tool, which is part of ComplianceDesktop's anti-corruption suite, adapts and automates a company's gifts and entertainment policy by allowing for automatic approval of certain expenses which meet pre-set criteria. If a situation arises in which employees need guidance on whether they can give a certain gift to a certain official, they can access the tool using a web-based interface or a web-enabled mobile phone. By answering a number of questions, the tool can calculate whether the gift can be given according to the company's policies, as well as any further rules or additional procedures that must be followed.

In addition, the tool also allows employees to provide detailed records whenever they are giving gifts, including details of the recipient such as their name, affiliation, and contact information. It also allows for the generation of customized reports to suit each individual company's needs.

"ComplianceDesktop's Gift and Benefits Tool is an inexpensive and powerful way to allow companies to keep track of all out-going gifts. This is especially so considering the enormous lost opportunity and real cost that companies can experience if they get caught by Chinese graft-buster for giving an official an appropriate gift, even if it was given with the most innocent of intentions," Lane said.

More Stories By Fuat Kircaali

Fuat Kircaali is the founder and chairman of SYS-CON Media, CloudEXPO, Inc. and DXWorldEXPO, Inc.

Kircaali came to the United States from Zurich University, Switzerland in 1984 while studying for his PhD, to design computer systems for SH-2G submarine hunter helicopters for the U.S. Navy. He later worked at IBM's IS&CG Headquarters as a market research analyst under Mike Armstrong's leadership, an IBM executive who later ran IBM Europe and AT&T; and Fuat was the Director of Information Systems for UWCC, reporting to CEO Steve Silk (later Hebrew National CEO), one of the top marketing geniuses of the past two decades.

Kircaali founded SYS-CON Media in 1994, a privately held tech media company with sales exceeding $200 million. SYS-CON Media was listed three years in a row by Inc 500 and Deloitte and Touche among the fastest-growing private companies in America. Kircaali launched DXWorldEXPO LLC, a Lighthouse Point, FL-based "digital transformation" events company in March 2017.

Fuat completed Bogazici University (ranked among the top 100 universities in the world) Business Administration program in 1982 with a Bachelor's Degree in Istanbul, Turkey. He was one of 50 students accepted to the program out of over 1 million high school graduates.

http://twitter.com/fuatkircaali

CloudEXPO Stories
All zSystem customers have a significant new business opportunity to extend their reach to new customers and markets with new applications and services, and to improve the experience of existing customers. This can be achieved by exposing existing z assets (which have been developed over time) as APIs for accessing Systems of Record, while leveraging mobile and cloud capabilities with new Systems of Engagement applications. In this session, we will explore business drivers with new Node.js apps for delivering enhanced customer experience (with mobile and cloud adoption), how to accelerate development and management of SoE app APIs with API management.
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully been able to harness the excess capacity of privately owned vehicles and turned into a meaningful business. This concept can be step-functioned to harnessing the spare compute capacity of smartphones that can be orchestrated by MEC to provide cloud service at the edge.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addressed the challenges of scaling document repositories to this level; architectural approaches for coordinating data; search and storage technologies, Solr, and Amazon storage and database technologies; the breadth of use cases that modern content systems need to support; how to support user applications that require subsecond response times.
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage of data and analytics in the cloud, Architecture, integration, governance and security scenarios and Key challenges and success factors of moving data and analytics to the cloud
For years the world's most security-focused and distributed organizations - banks, military/defense agencies, global enterprises - have sought to adopt cloud technologies that can reduce costs, future-proof against data growth, and improve user productivity. The challenges of cloud transformation for these kinds of secure organizations have centered around data security, migration from legacy systems, and performance. In our presentation, we will discuss the notion that cloud computing, properly managed, is poised to bring about a digital transformation to enterprise IT. We will discuss the trend, the technology and the timeline for adoption.