Sweden has its own sickness

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Dec 22, 2010

Sweden has its own sickness

By Ritt Goldstein

http://www.atimes.com/atimes/Front_Page/LL22Aa01.html

DALARNA, Sweden - As shock waves continue to emanate from Stockholm's recent

terror bombing, such an event appearing all but unthinkable given the Sweden

most people perceive, ongoing revelations highlight that Sweden has had some

disturbing changes. In many ways, today's Sweden faces the same problems as

other countries, including corruption and the sometimes nightmarish impact of

it.

Emphasizing Swedish corruption's gravity, the vast bulk of cases that have come

to light are occurring in municipal housing

companies and the construction industry, with the substantive " human costs " of

these scandals only beginning to be appreciated. So-called " sick houses " , the

significant health issues they've meant, are a recognized problem in Sweden,

with the ongoing scandals now suggesting why.

" This is something that really needs to be looked upon and looked into, " said

Justice Chancellor Skarhed of the scandals' health impact, sternly

observing for Asia Times Online that " there is even more of this [the effects of

corruption] than we've already seen, which is quite enough, and too much as it

is. "

China's infamous melamine scandal is said to have affected 300,000 people, or

about .024% of its populace. But over 10% of Sweden's people are suffering

varying degrees of ill health effects from badly constructed or maintained

housing, with a not insignificant number suffering quite severely.

In 2008, Scandinavia's largest paper, Aftonbladet, noted, " In a new study from

[sweden's] Umea University, it was found that 45% of those affected by sick

buildings - and who received medical treatment at a hospital clinic - are unable

to work. Of these, 20% receive a disability pension, and 25% are on sick leave. "

For much of its recent history, Sweden has represented what many consider the

embodiment of governmental integrity and efficiency, with typical Swedes

following rules so closely that virtually none even " jaywalk " . Decades of

cradle-to-grave government benefits have created a deep-felt faith in the

authorities, present events providing a decidedly rude awakening for most,

though not all.

Leif Kavestad - author of the Swedish book Sick Houses, building engineer, and a

former environmental inspector who was personally decorated by the prior prime

minister - has charged that " when residents complain about health hazards and

health problems in municipal housing, it's not uncommon for the municipality to

hire 'consultants' that will declare the property safe. " Kavestad pointedly told

ATol that " in legal disputes, the environmental agency always accepts the word

of the municipality's 'bought' consultants. Tenants which complain over sick

buildings with health complaints are sometimes threatened - the parties together

can act like a mafia against the tenants. "

In Sweden, municipal housing provides the majority of the country's rental

apartments, some being " high-end " properties.

" It's a big problem, and it's a big problem for the trust in the authorities and

the trust in the kommun [municipality] ... it has to be dealt with, and

seriously, " said Gustav Gellerbrant , spokesperson and political advisor for

Justice Minister Beatrice Ask, regarding the human consequences of housing

corruption.

Over the past months, increasing numbers of Swedes are examining their

surroundings through new eyes. " Bribes are more common than we thought " ,

" Bribery cases in many municipalities " , " Corruption and abuse of power in

Swedish municipalities " - these headlines representing but a few of the recent

months' revelations. Law-enforcement authorities have seen a change.

Prosecutor Gunnar Stetler, director of the Swedish prosecution authority's

National Anti-Corruption Unit (Riksenheten mot korruption), described for ATol

the current level of municipal corruption complaints to his office as " at least

50% higher " than the same period last year. A new investigative group within the

National Police to investigate corruption - including cross-border questions and

financial crime - is also now being worked on, Stetler emphasized, describing

expectations that the yet ongoing discussions would be finalized " during

December, or during January " .

Both Stetler and Justice Chancellor Skarhed are among a handful of key

contributors to the new police group's formation, Chancellor Skarhed noting " the

information I have from the prosecutor's office and the Riksenheten mot

korruption strongly indicates that the resources the police have given to these

[corruption] investigations have not been adequate for quite some time. " The

chancellor expects the new group to be formed in January.

Adding another dimension to the corruption problem, in September three rights

groups filed a criminal complaint against Saab, alleging bribery was involved in

the sale of Swedish fighter aircraft to South Africa. Prosecutor Stetler

describes the status of this case as under " active consideration " , a

determination on the opening of a preliminary investigation yet to be

forthcoming. But Stetler's unit has been busy.

Corruption revelations began detonating in April, with an investigative TV

program resembling a Swedish version of 60 Minutes entitled Uppdrag Granskning

(UG), exploding municipal corruption onto the national agenda. Their report

centered on " bribery and corruption in Gothenburg " , Sweden's second-largest

city, and today a place where all four of the city's municipal housing companies

have come under the National Anti-Corruption Unit's investigation.

Following the UG reports, charges ranging from aggravated corruption and fraud

to breach of trust and embezzlement have become among those being investigated.

Individuals focused on include local officials, municipal company executives,

and construction industry figures.

Drawing considerable outrage, funds earmarked for construction and renovation of

municipal housing appear to have gone to luxurious additions to officials'

private homes. " If you are 'well-connected' locally ... there might be people

then who are prepared to 'bend the rules' to give you favors, and maybe they get

favors back. And we know that this happens in municipalities, " said corruption

expert and political scientist Staffan Andersson of Sweden's Linne University,

cutting to the issue of so-called local " strongmen " , an issue well publicized as

a key corruption problem.

This autumn, Swedish National Television (SVT) aptly kicked off a new comedy

series about an inept and corrupt municipal politician,Strong Man ( " Starke

man " ), parodying the kinds of corrupt behaviors that have been making headlines.

Over the past 20 years, Sweden privatized increasingly large segments of its

public sector, particularly in municipalities. It set up hybrid companies that

were owned by municipalities but operated as semi-independent firms, firms with

far looser controls than when their work was done as an official municipal

organ. " We have been so focused on productivity, efficiency, and cost savings

.... but there's also another side, " Andersson explained. He added that when it

came to effective controls within these new entities, events have " not been

running as quick as we have done with productivity " , questioning whether today's

controls fit " the kind of administration we had 20years ago " .

Illustrating his point, Andersson emphasized for ATol that " there are a lot of

instances where ... municipalities are actually carrying out authority in a way

which is regarded as illegal by courts, administrative courts, but they actually

do it anyway " . Paralleling this, an October SVT news report had earlier revealed

how some municipal auditors whitewashed wrongdoing, then received legal immunity

from the municipality for their actions, leaving no one legally culpable.

Pockets of widespread and deeply entrenched municipal problems have been

increasingly seen.

In Falun, the municipal housing company, Kopparstaden, is particularly

noteworthy, first making national headlines in 2009 with a story about its chief

executive officer (CEO) and pornography. Following this, the CEO violated

company rules by purchasing property for Kopparstaden's new headquarters from a

close friend.

The transaction was first stated as approximately 3 million Swedish kronor

(US$440,000), then later " revised " to about five million. Subsequent research

revealed that the " revision " was due to debt which was acquired by Kopparstaden

with its property purchase, though, according to the City of Falun's accounting

firm, KPMG, apparently no documents were presented to Kopparstaden's board

regarding that debt.

Kopparstaden's new headquarters eventually cost a third over budget, KPMG

reporting that the firm's internal controls " had not worked " , and that its CEO

had wanted a 295,000 kronor tennis court at the new office. Subsequently, the

CEO was quoted by a local paper as claiming KPMG was in error on its cost

figures, that the new headquarters was in reality " great business " .

When contacted, Kopparstaden refused to be interviewed for this article.

Prosecutor Stetler noted that the KPMG report indicated Kopparstaden violations

of " law or regulation " , but he added that under current Swedish law, it was

necessary to prove " intent " in order for a prosecution to occur. Wrongdoing in

itself is not actionable.

Andersson blamed weak municipal scrutiny and weak legal sanctions as key

corruption problems.

Beyond financial issues, Kopparstaden has made headlines regarding tenant health

problems, some health issues being severe, one even life-threatening. Notably,

similar to its pronouncements on KPMG's " error " , in court documents the firm

describes an apartment the local environmental authority condemned as

uninhabitable to be without any serious damage; though, substantive injuries to

the tenant had resulted, and tests revealed the apartment had " unusually high "

levels of toxic chemicals such as chloroform and benzene, plus a " powerfully

elevated " mold level.

Notably, a report published by Swedish corruption researchers in November 2008,

" Public Corruption in Swedish Municipalities - Trouble Looming on the Horizon? " ,

did warn of potential problems with the municipal hybrid firms.

In subsequently explaining how Sweden's municipal corruption grew, one of the

report's authors, political scientist Gissur Erlingsson of Linkoping University,

placed blame on both the creation of " fast and loose " municipal hybrids, and an

erosion of whistleblower protections beginning in the mid-1990s, saying " people

got more and more wary and afraid of losing their job " .

Examining another aspect of events, Dr Burston (PhD Psychology, PhD

Social and Political Thought), chair of Pittsburgh's Duquesne University

psychology department, observed a culture of corruption always contains a large

" group of passive and increasingly indifferent people who simply 'go along' with

the status quo " . " They try to avoid losing what they have by not opposing the

strongmen and their agents, and offering them bribes or 'cover', when

necessary " , Burston outlined for ATol, adding that such conduct " becomes the

`new normal', and so routinized, in many ways, that it becomes completely

unconscious - a tacitly accepted part of prevailing social and cultural

expectations. "

In societies where those in authority are particularly respected, Burston

observed that public opinion, combined with the phenomenon of " group think " ,

might well enable " corrupt leaders to gather the mantle of respectability around

their shoulders, and then operate unhindered as 'wolves in sheep's clothing'. "

" Prosecution has preventative effects, " law professor Claes Sandgren of

Stockholm University emphasized, " you don't just prosecute to put just one

individual in prison, you also prosecute to deter others. "

Ritt Goldstein is an investigative political journalist whose work has appeared

widely, including in the US's Christian Science Monitor, Spain's El Mundo,

Austria's Wiener Zeitung and Australia's Sydney Morning Herald, as well as with

other significant members of the global media.