This is the infamous corruption saga that took place in the French Third Republic in the year 1892. The scandal was an exposure of the France Chamber of Deputies, the enemies of the Third Republic pushed this scandalous event into greater heights that was much less uncontrollable. For the country overcome the financial situation in 1888, Panama Canal Company needed to float a lottery for the purpose of raising money to cater for the situation.
The chamber of deputies received the documentation for approval, and it was later to be sent to the Senate in June 1888. Most French investors were part of the company; the company collapsed in 1889.A liquidator was arranged by the government so that the existing buildings that were owned by the company could remain maintained, tools and machinery ("EU ministers propose 'urgent' measures after Panama scandal - The Economic Times," 2016).
It was published in 1892 by two newspapers the La Libre Parole and La Cocarde that accused the government of complicity with the company which led to corruption and mismanagement of funds. It was claimed that over 510 parliamentarians took bribes to vote the lottery loan in 1888. The exact value of the company was hidden to the public. An inquiry commission was setup, and Emile Loubets government was forced to halt duties.
The bribery of parliamentarians had been managed by three men; Baron Jacques de Reinach, Leopold Arton, and Cornelius Hertz. These people fled the country and went ahead to live abroad while Baron died in 1892 presumable by Suicide. Other people went ahead to confess their criminal actions such as receiving money and were sentenced to prison. The parliamentarians accused of receiving bribery were acquitted of their accusations due to lack of incriminating evidence 1897 ("EU ministers propose 'urgent' measures after Panama scandal | AFP.com," 2016).
Due to association with Cornelius Hertz, Georges Clemenceau was defeated in the 1893 countrys general election. Through the years, three governments collapsed, this was due to a raise of doublets in the public eye on the clear intentions of the movement and their loyalty to their people, and this meant politicians were no longer trusted by the French people.
The situations surrounding the Panna scandal led to the death of many people, for instance, Baron Jacques Reinach went ahead to commit suicide due to the double dealings and blackmail played by Hertz. Reinach decided that before he died he would release the names of suborned members of parliament in exchange for the papers to cover Reinach role in the fiasco, La Libre Parole covered the story and printed the list of names, overnight the newspaper became the limelight of French Politics. The list was printed in small lists which made most opticians leave the country during this period ("Heritage History | Homeschool History Curriculum | Story of Modern France by Helene Guerber", 2016). The Jews were the middle men between the company and the state, in the long run, it led to the development of the Dreyfus Affair.
In 1894 the new Panama Canal company was formulated, this company was created to manage the assets and the construction activities of the previous company. The company went ahead to look for another buyer for the new construction units, and they Gore an asking price of $109 million. The construction of the canal was later taken over by the United States, which bought a lease, the shares, and assets in the Hay Buau Varilla Treaty of November 1903 for $40 million. The canal was later opened in 1914 ("EU ministers propose 'urgent' measures after Panama scandal | AFP.com", 2016). Reference
EU ministers propose 'urgent' measures after Panama scandal - The Economic Times. (2016). The Economic Times. Retrieved 23 April 2016, from http://economictimes.indiatimes.com/news/international/business/eu-ministers-propose-urgent-measures-after-panama-scandal/articleshow/51955437.cms
EU ministers propose 'urgent' measures after Panama scandal | AFP.com. (2016). Afp.com. Retrieved 23 April 2016, from https://www.afp.com/en/news/15/eu-ministers-propose-urgent-measures-after-panama-scandal
Heritage History | Homeschool History Curriculum | Story of Modern France by Helene Guerber. (2016). Heritage-history.com. Retrieved 23 April 2016, from http://www.heritage-history.com/?c=read&author=guerber&book=modfrance&story=panama
How Panama ended up in the middle of a financial scandal. (2016). Washington Post. Retrieved 23 April 2016, from https://www.washingtonpost.com/world/the_americas/where-the-papers-got-their-name/2016/04/09/f088582e-fcf8-11e5-813a-90ab563f0dde_story.html
Swiss police raid UEFA as Panama Papers scandal spreads. (2016). Reuters. Retrieved 23 April 2016, from http://www.reuters.com/article/us-panama-tax-idUSKCN0X10C2
Cite this page
Panama Scandal. (2019, Sep 05). Retrieved from https://speedypaper.com/essays/panama-scandal
If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:
- Customer Loyalty
- New Regulations to Protect the Consumers
- Return on Investment
- Weighing essay
- Business Intelligence and Health Analytics
- I have come across many journals, articles, reviews and brochures and their scope is vast.
- Business Torts and Ethics
- Comparative Essay Example
- An Independent regulatory agency
- Strategic Management Research
- Consciousness and Cultures
- Visual merchandising and display techniques
- Closed-circuit television
- Kpone City Branding
- Red Sorghum (Hong Gao Liang) -Movie Analysis