MEASURES TO REDUCE

CORRUPTION

PRSENTED BY

ANGEL KRISHNA SANA SAHANA POOJA GIRISH

INDIA AN OVERVIEWON CORRUPTION

India corruption study conducted by TII

Report by bribery demands conducted by Trace international

Corruption perspective

Its not limited to government sector

There are both side in corruption demand side and supply side

Specific Corruption Risk in Private Sector For the larger contracts : Bidding cartels

where there is

Agreement on prices Agreement who enters lowest bid Agreement to rotate bid of winning company Compensation for bidding costs etc etc

Nearly always for a public sector agency, if fraud is well organized, its difficult for the procurement agency to detect.

Why deal with private sector

Corruption in the private sector affects public interest. It is the public that suffers in the end

In order to attract investment, it is important to ensure that business cost is low ; and corruption whether in private or public sector, increases business costs.

Types of corruption in private sector Cases involving contracts or procurements of services or

supplies

Cases involving corrupt offenders who supervise contractors or suppliers.

There are those who are corrupt, and have access to sensitive data which they divulge to unauthorized persons in return for some award

Contd…

Then there are those who are in a position of authority such as CEO or General Manager, who take bribe and grant approval for various matters in favor of bribe givers

In some cases corruption is mixed with other offences.

Private vs Public Sectors

Policies and procedures in private sector are comparatively less comprehensive and detailed than the public sector

Perception that offences committed in public sector are more serious than the ones in private sector

Enforcement agencies for public sector more mature

Private sector and public sector are intertwined because private sector provides goods and services to public sector

Types of Corruption in Types of Corruption in IndiaIndia Recovery Agents: Perturbed over the way certain

banks went overboard to provide advances and then used the services of “recovery agents” to recover the debts, the country’s banking regulatory Reserve Bank of India (RBI) came up with the guidelines for Recovery Agents.

Stock Markets Debts: The country has witnessed various stock market frauds by brokers in collusion with corporate to cheat investors and hoodwink regulator

Cartilisation: Scuttling competition is another kind of malpractice in which corporate indulge in their pursuit to maximise profits

Types of corruption Investors Trading: The other corporate fraud, which prevails

not only in India but also elsewhere in the world, is insider trading

Technical Education :In order to prevent exploitation of students by technical institutes, the regulator All India Council for Technical Education (AICTE) came out with a public notice asking institutes not to forfeit fee if a student decides to leave the institute before beginning of

the course.

Government check on Corruption The Indian Government and its regulatory bodies during

the course of last year have introduced various legislations and regulations having a direct and indirect bearing on corruption, corporate frauds and questionable practices being followed by the private sector companies. Some of the important ones are as follows

Consent Orders

Competition Act

The social impact SOCIETY DISINTEGRATES

Causes much hurt to minorities, women,and the poor, increasing poverty poor cannot afford bribes; ‘relief’ diverted

Causes people to lose trust in each other in the workplace, in families and in government, politics, democracy

Leads to anger, frustration, conflict

DAMAGE TO SECURITY

CORRUPTION KILLS Less protection Nobody is safe More crime People live in fear

CITIZENS’ CONCERNS Many not convinced about hurt to economy!

Damage understated, but importance over-rated? ‘Corrupt’ countries (and companies) do well

More concern about loss of trust risks of conflict in family, workplace, government

Most concern about unsafe food and drugs, increased crime, ‘terrorism’, loss of safety

True of all countries, whether with developing, developed or transitional economies?

THE EXPERIENCE OF CORRUPTION

CORRUPTION COMES IN: All sizes Many forms Two frequencies

Not very often - Low Frequency, or

Nearly always ‘VHF’in any one group of activity……..

Anti-Corruption Strategy

Situation 1:

John the anti-corruption guy and the corrupt counter-part.

Be HonestAvoidPreventConfrontWithdrawRecord 

Be Honest

Avoid

Prevent

Confront

Withdraw

Record

Anti-Corruption Strategy (cont.)

WithdrawJust get out of there!

Prevent Make enquiries if you suspect corruptionTake preventive measures to stop corruptionDon’t instruct, authorize, or condone corruption

Avoid Don’t get involvedDon’t act fraudulently.Don’t endanger yourself or others.

Confront:Indicate the company policiesIndicate the legal legislation

RecordRecord the act of corruptionRecord the transaction for accounting purposesKeep a copy of the record

WHY DO PEOPLE ACT CORRUPTLY?

Personal greed, ‘everybody does it’, so ‘fair’ To help family and friends

an economy of affection To hurt employers, managers

because ‘they’ treat us unfairly because the bosses get rich by corrupt means

So people justify corrupt acts to themselves Example: British householders ‘pay cash’ for

work and the ‘honest builder’ goes bankrupt

A CRIME OF OPPORTUNITY Personal greed, ‘everybody does it’, so

‘fair’ To help family and friends

an economy of affection To hurt employers, managers

because ‘they’ treat us unfairly because the bosses get rich by corrupt means

So people justify corrupt acts to themselves Example: British householders ‘pay cash’ for

work and the ‘honest builder’ goes bankrupt

THE CORRUPTION TRAP!

Then somebody new joins the office staff… If they don’t do the same, a problem…

that may expose the crime of those who do They are urged to join in

and perhaps threatened if they don’tas for the police recruits in Hong Kong…

Many trapped in patterns of corrupt activity Without restraints VHF corruption is the norm We need to explain integrity, not corruption

Good Private sector Anti Bribery practice is a six step process

Assessment of specific corruption risks of the business  

Development of detailed anti bribery policies

Implementation of the policies Self monitoring of the effective

implementation of the policies Public reporting on the policies and related

programmes Independent assurance of the effectiveness

of these efforts

Measures to reduce corrruption

The most important thing is to resolve the underlying factors that cause corruption in local government.

Continue to change the primary focus of global Anti-Corruption campaigns to local governments

Because they are closest to citizens, transparency and accountability are the most important to the legitimacy of local officials

It is simpler to find partners to stop corruption locally

National politicians many times start off their political careers in the local government.

Cont….. Accountability-enhancing reforms and Civil

service reform Strengthening the oversight and sanctions

of local officials to improve accountability Anti-corruption monitoring groups or

commissions Enforce existing anti-bribery legislation Create more policies to close the gender

gap in public office holding

Conclusion

Finally, attitudinal change is necessary. By changing our thoughts, we can change our attitude and thereby change our behavior, which can change our lives.  The quality of our thoughts equals the quality of our lives. Let us all work towards changing our attitude towards corruption. Lets say No to corruption..

Bibliography

www.wikipedia.com www.google.com CNBC News