A GUIDE FOR FINANCIAL FRAUD INVESTIGATION & PRECAUTION by SHIVANI SHARMA (books to read for beginners .txt) 📕

which encourage systemic corruption include conflicting incentives, discretionary powers; monopolistic powers; lack of transparency; low pay; and a culture of impunity.[16] Specific acts of corruption include "bribery, extortion, and embezzlement" in a system where "corruption becomes the rule rather than the exception."[17] Scholars distinguish between centralized and decentralized systemic corruption, depending on which level of state or government corruption takes place; in countries such as the Post-Soviet states both types occur.[18] Some scholars argue that there is a negative duty[clarification needed] of western governments to protect against systematic corruption of underdeveloped governments.[19][20]

Corruption in different sectors[edit]

Corruption can occur in many sectors, whether they be public or private industry or even NGOs (especially in public sector). However, only in democratically controlled institutions is there an interest of the public (owner) to develop internal mechanisms to fight active or passive corruption, whereas in private industry as well as in NGOs there is no public control. Therefore, the owners' investors' or sponsors' profits are largely decisive.

Government/public sector[edit]

 

Public corruption includes corruption of the political process and of government agencies such as the police as well as corruption in processes of allocating public funds for contracts, grants, and hiring. Recent research by the World Bank suggests that who makes policy decisions (elected officials or bureaucrats) can be critical in determining the level of corruption because of the incentives different policy-makers face.[21]

Political corruption[edit]Main article: Political corruptionA political cartoon from Harper's Weekly, January 26, 1878, depicting U.S. Secretary of the Interior Carl Schurz investigating the Indian Bureau at the U.S. Department of the Interior. The original caption for the cartoon is: "THE SECRETARY OF THE INTERIOR INVESTIGATING THE INDIAN BUREAU. GIVE HIM HIS DUE, AND GIVE THEM THEIR DUES."

Political corruption is the abuse of public power, office, or resources by elected government officials for personal gain, by extortion, soliciting or offering bribes. It can also take the form of office holders maintaining themselves in office by purchasing votes by enacting laws which use taxpayers' money.[22] Evidence suggests that corruption can have political consequences- with citizens being asked for bribes becoming less likely to identify with their country or region.[23]

The political act of Graft (American English), is a well known and now global form of political corruption, being the unscrupulous and illegal use of a politician's authority for personal gain, when funds intended for public projects are intentionally misdirected in order to maximize the benefits to illegally private interests of the corrupted individual(s) and their cronies.

The Kaunas "Golden Toilet".

The Kaunas golden toilet case was a major Lithuanian scandal. In 2009, the municipality of Kaunas (led by mayor Andrius Kupčinskas) ordered that a shipping container was to be converted into an outdoor toilet at a cost of 500,000 litai (around 150,000 euros). It was to also require 5,000 litai (1,500 euros) in monthly maintenance costs.[24] At the same time when Kaunas's "Golden Toilet" was built, Kėdainiai tennis club acquired a very similar, but more advanced solution for 4,500 euros.[24] Because of the inflated cost of the outdoor toilet, it was nicknamed the "Golden Toilet". Despite the investment, the "Golden Toilet" remained closed for years due to the dysfunctionality and was a subject of a lengthy anti-corruption investigation into those who had created it and [24] the local municipality even considered demolishing the building at one point.[25] The group of public servants involved in the toilet's procurement received various prison sentences for recklessness, malfeasance, misuse of power and document falsifications in a 2012 court case, but were cleared of their corruption charges and received compensation, which pushed the total construction cost and subsequent related financial losses to 352,000 euros.

Various sources acclaim the Spanish People's Party – Partido Popular -, to be Europe's most corrupt party, with about yearly 45 billion euro worth of corruption.[26]

Police corruption[edit]Main article: Police corruption

Police corruption is a specific form of police misconduct designed to obtain financial benefits, personal gain, career advancement for a police officer or officers in exchange for not pursuing or selectively pursuing an investigation or arrest or aspects of the thin blue line itself where force members collude in lies to protect other members from accountability. One common form of police corruption is soliciting or accepting bribes in exchange for not reporting organized drug or prostitution rings or other illegal activities.

Another example is police officers flouting the police code of conduct in order to secure convictions of suspects—for example, through the use of falsified evidence. More rarely, police officers may deliberately and systematically participate in organized crime themselves. In most major cities, there are internal affairs sections to investigate suspected police corruption or misconduct. Similar entities include the British Independent Police Complaints Commission.

Judicial corruption[edit]

Judicial corruption refers to corruption-related misconduct of judges, through receiving or giving bribes, improper sentencing of convicted criminals, bias in the hearing and judgement of arguments and other such misconduct.

Governmental corruption of judiciary is broadly known in many transitional and developing countries because the budget is almost completely controlled by the executive. The latter undermines the separation of powers, as it creates a critical financial dependence of the judiciary. The proper national wealth distribution including the government spending on the judiciary is subject to the constitutional economics.

It is important to distinguish between the two methods of corruption of the judiciary: the government (through budget planning and various privileges), and the private.[27] Judicial corruption can be difficult to completely eradicate, even in developed countries.[28] Corruption in judiciary also involves the government in power using the judicial arm of government to oppress the opposition parties in the detriments of the state.

Corruption in the education system[edit]

Corruption in education is a worldwide phenomenon. Corruption in admissions to universities is traditionally considered as one of the most corrupt areas of the education sector.[29] Recent attempts in some countries, such as Russia and Ukraine, to curb corruption in admissions through the abolition of university entrance examinations and introduction of standardized computer-graded tests have largely failed.[30] Vouchers for university entrants have never materialized.[31] The cost of corruption is in that it impedes sustainable economic growth.[31][31] Endemic corruption in educational institutions leads to the formation of sustainable corrupt hierarchies.[32][33][34] While higher education in Russia is distinct with widespread bribery, corruption in the US and the UK features a significant amount of fraud.[35][36] The US is distinct with grey areas and institutional corruption in the higher education sector.[37][38] Authoritarian regimes, including those in the former Soviet republics, encourage educational corruption and control universities, especially during the election campaigns.[39] This is typical for Russia,[40] Ukraine,[41] and Central Asian regimes,[42] among others. The general public is well aware of the high level of corruption in colleges and universities, including thanks to the media.[43][44]Doctoral education is no exception, with dissertations and doctoral degrees available for sale, including for politicians.[45] Russian Parliament is notorious for "highly educated" MPs[46] High levels of corruption are a result of universities not being able to break away from their Stalinist past, over bureaucratization,[47] and a clear lack of university autonomy.[48] Both quantitative and qualitative methodologies are employed to study education corruption,[49] but the topic remains largely unattended by the scholars. In many societies and international organizations, education corruption remains a taboo. In some countries, such as certain eastern European countries, some Balkan countries and certain Asian countries, corruption occurs frequently in universities.[50] This can include bribes to bypass bureaucratic procedures and bribing faculty for a grade.[50][51] The willingness to engage in corruption such as accepting bribe money in exchange for grades decreases if individuals perceive such behavior as very objectionable, i.e. a violation of social norms and if they fear sanctions regarding the severity and probability of sanctions.[51]

Within labor unions[edit]

The Teamsters (International Brotherhood of Teamsters) is an example of how the civil RICO process can be used. For decades, the Teamsters had been substantially controlled by La Cosa Nostra. Since 1957, four of eight Teamster presidents were indicted, yet the union continued to be controlled by organized crime elements. The federal government has been successful at removing the criminal influence from this 1.4 million-member union by using the civil process.[52]

Corruption in religion[edit]Main articles: Simony, Cardinal-nephew, and Criticism of the Catholic Church § Criticism of corruption

Wikiquote has quotations related to: Corruption in religion

The history of religion includes numerous examples of religious leaders calling attention to corruption in the religious practices and institutions of their time. Jewish prophets Isaiah and Amos berate the rabbinical establishment of Ancient Judea for failing to live up to the ideals of the Torah.[53] In the New Testament, Jesus accuses the rabbinical establishment of his time of hypocritically following only the ceremonial parts of the Torah and neglecting the more important elements of justice, mercy and faithfulness.[54] Corruption was one of the important issues during the Investiture Controversy. In 1517, Martin Luther accuses the Catholic Church of widespread corruption, including selling of indulgences.[55]

In 2015, Princeton University professor Kevin M. Kruse advances the thesis that business leaders in the 1930s and 1940s collaborated with clergymen, including James W. Fifield Jr., to develop and promote a new