Corruption

• Corruption is the illegitimate use of public power to benefit

a private interest.
• Public sector corruption is the use of public resources and
authority for private gain.
Consequently, as resources are channeled toward private
utility gains, public organizations will likely produce
suboptimal outcomes that retards economic growth
• Corruption, is a form of dishonesty or a criminal offense
which is undertaken by a person or an organization which
is entrusted with a position of authority, in order to acquire
illicit benefits or abuse the power for one's private gain.
• Corruption is improper or selfish exercise of power and influence
attached to a public office or to a special position in public life.
• Corruption is dishonest behavior by those in positions of power,
such as managers or government officials.
• Corruption can include giving or accepting bribes or
inappropriate gifts, double-dealing, under-the-table
transactions, manipulating elections, diverting funds, laundering
money, and defrauding investors.
• Corruption as an action to secretly provide a goods or service to
a third party so that s/he can influence certain actions which
benefit the corrupt, a third party, or both in which the corrupt
agent has authority.
• Definition of corruption is extremely complex.
The simple definition is also the most powerful: “corruption is
the misuse of public & private office for personal gain”. Misuse
covers both sins of commission and sins of omission.
1. Market centered approach(by: Rance P.L. Lee)
This concept is primarily concerned with the process of
exchange & the balance between supply & demands. For this
prospective, a corrupt official is just like a businessman who
tends to use his office as a device for maximizing his own
profit.
It defines corruption mainly in terms of its cause, rather than
corrupt act itself.
2. Public-interest centered Approach:
This approach defines corruption primarily in
terms of its consequences.
From this perspective, corruption is an act of
an office holder which favors one special
section of the public who gives the rewards not
legally provided for, thus resulting in damage to
common interests of the general public.
3. Public-office-centered approach:
This approach defines corruption is an act which
violates/deviates from the formal rules of public office
because of private regarding gains. This approach
takes into consideration not only one important
motivation or consequences of corruption but also the
nature of corruption, i.e. deviation from norms.
In any society what is “right” or “wrong” is relative to
existing norms shared by the people.
Accordingly , an act may be corrupt in one society, but the
same act may be normal in another society or even in the
same society in the another time may not be corruption.
 Hence, it is the existing norms & values that determines whether
an act is corruption or not at a particular time & place.
Corruption involves behavior on the parts of officials in the public
sector, whether politician or civil servants, in which they improperly &
unlawful enrich themselves or those close to them, by misuse of public
power entrusted them.
-TI,1996
TI publish global “corruption perception index” (CPI) every year since
1995.
• The definition utilized by the World Bank is “the abuse of public
office for private gain.”
• OECD also defines “it is the misuse of public office, roles or
resources for private benefits.”
These definitions are similar to that employed by
TI.
These definition do not cover the problems of
corruption in the private sector or cover only
limited aspects of the role of private sector in
fostering corruption in government.
Accordingly, ADB defines corruption as a abuse of
public or private office for personal gain.
Schiavo-Campo & Sundaram.
• Types of Corruption(classification):
• 1 Grand & Petty corruption
• 2 Systemic corruption & individual corruption
• 3 Syndicated corruption & non syndicated
corruption
• 4 Corruption deviating from formal duties &
corruption not disturbing formal duties.
1. Grand corruption, which typically involves senior officials,
major decisions or contracts, and the exchange of large sum
of money; where as petty corruption involves low-level
officials, the provision of routine services & goods and small
sum of money.
2. Systemic corruption, which permeates an entire government
or ministry where as individual corruption is more isolated and
sporadic.
3. In Syndicated corruption in which elaborated system are
devised for receiving and disseminating bribes ; and non-
syndicated corruption, in which individuals officials may seek or
compete for bribes in ad hoc and uncoordinated manner.
4 . Next, bribes given to induce public officials to deviate
from their duties should be distinguished from “grease
money” .
Some other types of corruption are as follows:
a. Policy corruption & operational corruption,
b. Public sector corruption & private sector corruption.
c. Monetary corruption & non-monetary corruption.
d. National boarder non-crossing corruption & national
boarder crossing corruption.
e. Internal corruption & external corruption.
f. Political corruption & administrative corruption.
Causes of Corruption:

1. Environment (socio-economic, cultural values & norms

influence on the tendency to involve in corruption.)
2. Political cause
3. Inefficient judicial system: (inefficient, expensive, time
taking judicial system/ process may lead to corruption.)
4. Administrative Delay
5. The exercise of extra constitutional authority
6. Weak handling of corruption case
 Handling of corruption is influenced by many reason like:
a. investigation capacity
b. legal framework
c. political interference
d. protection & confidence of officials involved in
investigation
e. unwillingness of the people involved in investigation to
deteorate their personal relation with concern individuals
etc..
7. Low salary of government officials.
9. Rise of professional politicians;
10. Inadequate or inappropriate laws to deal with corruption;
11. Lack of political commitment & will
12. Lack(or weak) of free & fair election system
13. Lack of good example from higher level of political &
administrative leaders.
14. Political protection of corrupt officials
15. Lack of people consciousness
16. Erosion of ethical values
17. Readiness of Industrial & business classes to spend little to earn
more illegally.
Forms of corruption:
1. Treason, Subversion, illegal foreign transaction,
Smuggling.
2. Privatization of public funds, Larceny & stealing.
3. Misappropriation, forgery & embezzlement ; Padding
of account; misuse of funds.
4. Abuse of Power; Intimidation; Torture ;
Undeserved Pardons & remissions.
5. Deceit and fraud; Misrepresentation ; Cheating &
swindling; Blackmail.
• 6. Perversion of justice; Criminal behavior, False evidences;
Unlawful detention; Frame-ups
• 7. Non-performance of duties; Parasitism
• 8. Bribery & graft; Extortion; Illegal Levies ; Kickbacks
• 9. Election Tempering; Vote-riggings, Gerrymandering.
• 10. Misuse of inside knowledge & confidential information;
Falsification of records.
• 11. Unauthorized sale of public property & public licenses.
• 12. Manipulation of rule & regulations regarding purchases
and supplies, contracts & loans.
• 13 tax Evasion; Excessive Profiteering.
• 14. Influence Peddling ; Favor-Brokering; conflicts of
interest.
• 15.Acceptance of improper gifts, fee, speed money ,
entertainment, junkets
• 16.Links with organized crime; Black market operations
• 17. Cronyism, nepotism, Cover-ups
• 18. Illegal surveillance; Misuse of mails &
telecommunications.
• 19. Misuse of official seals, Stationary, residence &
pre-requisites…etc
 Ways to control Corruption:
1. Formulation & implementation of anti-corruption policies; and
promote effective practices aimed at the prevention of corruption.
2. Ensure the existence of bodies(agency) to prevent corruption &
grant the bodies necessary independence, autonomy to carry out
their function separately.
3. Adoption of transparent & objective criteria for the recruitment,
hiring, retention, promotion and retirement of civil servants;
and for the candidature & election of elected officials.
4. Formulate & Implement codes of conduct for administrative &
political officials ; and promote integrity, honesty and
responsibility among its public officials.
• 5. Establish appropriate systems of procurement based on
transparency, competition and objective criteria in decision making;
and promote transparency & accountability in management of
public finance.
• 6 . Public Reporting or adoption of procedure allowing member of the
general public.
• 7 Strengthen integrity and independence of judiciary & prosecution
services.
• 8. Enhance accounting & auditing standards and prohibit to use
inadequate & false documents.
• 9 Promote the active participation of individuals & groups outside
the public sector in the fight against corruption.
• 10. Effective regulatory & supervisory regime for bank &
non-bank financial transaction to deter & detect all forms
of money –laundering.
etc……

Major Reasons for Failure in Corruption Control Programs:

1. Lack of political will among decision makers;
2. Limited power & resources to accomplish reforms;
3. Over ambitious & unrealistic promises;
4. Uncoordinated efforts & reforms;
• 5 Reform that rely too much on law
enforcement only.
• 6 Reform strategy that target only low level
officials and officials related only with certain
services & organization;
• 7 Lack of people awareness .