Britain's expense account scandal - and some notable others

Earlier this year Britain's belief in their political system took a hard hit with the release of information documenting the expense system used by MPs.

This scandal revealed that although the politicians were not doing anything illegal, many were not deemed to be acting ethically. This revelation came hot of the heels of the credit crisis and global economic recession, which left the British public feeling betrayed and vulnerable.

The issues that were raised included a need for more transparency from the Government, an overview of the lax expense and allowances system and a look at politicians' salaries.

Here are some NZ Herald stories covering the MP expenses scandal in the UK:

What is the UK expenses scandal?
After a leaked document to the Daily Telegraph exposed the expenses claimed by MPs in Britain, it became clear that the British public had a different understanding on what their MPs should and could spend expense accounts on.

Liam Dann Business blog: Political scandal takes heat off bankers
The real issue is that an MPs' pay is often not extravagant, and so instead of a pay overhaul and therefore opening a public discussion and scrutiny, a flexible expense system was created and politicians viewed it as part of their pay packet.

The scandal over the MPs' expenses did however give the financial sector breathing space to review their own pay dilemmas out of the spotlight.

UK: Voters want rorting MPs to be opposed
Who will stand again in the next UK elections? The exposure of MP expenses in the UK has created fresh interest in politics and is encouraging the public to stand in opposition against the shamed MPs. Those who have had the political fired ignited include celebrities such as TV presenter Esther Rantzen.

UK: Speaker facing revolt by MPs
The Speaker of the House of Commons, Michael Martin, was held up as an example regarding the MP expense scandal and became the first speaker to be forced out since 1695.

Here are a few links from British and global newspapers covering the MP expense scandal in the UK:

The Economist: A speaker speechless
Michael Martin was forced out as The Speaker of the House of Commons after an uproar surrounding his use of the expense and allowances system. Through this system Mr Martin had claimed expenses in doing up a second house, which was in turn sold for profit, tennis court maintenance and other nest-feathering actions.

The Times: MPs end centuries of self-regulation as Michael Martin quits
In retaliation surrounding the uproar over politicians' expense accounts, the British Government have agreed to put in place reform plans that tighten the administration system and put an end to the 'self-regulation' attitude that was taken with the allowances and expenses by MPs.

The Times: New MP expenses rules curb 'flipping' and most second-home allowances
The practice of 'flipping' houses by using tax payers' money to renovate second properties to then re-sell for profit or to avoid capital gains tax seemed to be a common place occurrence within the MPs circle.

The Guardian: MPs' expenses
The Guardian has put together a topic page surround the issues and developments of the MPs expense scandal.

The Telegraph: MP's expenses
The Telegraph has put together a topic page surrounding the issues and developments of the MP's treatment of their expense accounts, from backbenchers to the Cabinet.

Here are a few expenses scandals world wide:

The Philipines: Imelda Marcos
The First Lady of the Philippines obtained quite a reputation on excessive spending at the expense of her country, in a time when the Philippines was experiencing great poverty. She was most famous for her shoe collection, of which there is now a museum, but also with here extravagant actions – it is rumoured she once sent a plane to Australia to get white sand from a beach resort.

Jamaica: Minister's mansion - Port Authority spends $60m
Transport and Works Minister Mike Henry in Jamaica came under criticism for the refurbishment of a state-owned residence. It was deemed as "an inappropriately lavish expenditure at a time when the nation is in the throes of a severe financial bind".

USA: Lawmakers Bill Taxpayers For TVs, Cameras, Lexus
After the British scandal the Wall Street Journal looked at the US government and their personal spending at taxpayers' expense.

Corporate world: 5 Tales of Outrageous Expense Account Abuse
Expense accounts have always been a part of business but here are five stories that take it a step too far.