We all suffer from corruption in our day to day lives. Infact it is so prevalent in society that right from getting birth certificate to d...
We all suffer from corruption in our day to day lives. Infact it is so prevalent in society that right from getting birth certificate to death certificate, booking a gas or a house, we face corruptions at all levels of society. In the recent past it came to much limelight in the Anna’s andolan, society at large joined the movement perhaps in the hope that now we have arrived at the solution but it all ended up in rise of a political party. Perhaps a pathetic end of a genuine mass movement.
Anyhow let’s get into some facts about corruption;
1. What is Corruption and what all it includes?
Oxford defines corruption as dishonest or fraudulent conduct by those in power, typically involving bribery. So corruption includes bribery.
While in India we symbolize corruption with government agencies and bureaucracy but they are not alone. ACFE considers Conflict of interest, Bribery, Illegal gratuities & economic extortion as part of corruption. Conflict of interest is much prevalent in private sector too especially in bidding, purchase and sale quotation etc. Bid rigging & Invoice kickbacks ,all these are types of bribery only.
As per ACFE 2016 survey, corruption was observed in approximately 35% of the cases causing median loss of $200000.As per the ACFE Statistics corruption remains in top two schemes of fraud in almost all the regions. Though in the Asia Pacific region it is the top most scheme with 48.4% of the cases.
2. Do you know corruption is not only in government sector? Yes you heard it right let’s see some statistics.
As per ACFE 2016 statistics, Corruption in Government & Public Administration is not even in the top 5 industries.
ACFE reports, 51.5% corruption in Transportation &warehousing , 48.6% in Oil & Gas,48.4% in Manufacturing,44.6% in Technology and 41.9% in Telecommunications. So Government sector gets 6th rank with 38.4%.
3. Males are more prone to corrupt practices. No, I am not saying this, the survey says.
As per the ACFE Survey,43.9% of the perpetrators involving corruption were male and only 22.5% were female.
4. Laws for handling corruption in India.
· The Indian Penal Code, 1860 and
· The Prevention of Corruption Act, 1988.
· The Benami Transactions (Prohibition) Act, 1988
· The Prevention of Money Laundering Act, 2002
· Right to Information Act.
5. Foreign Laws on Corruption & Bribery
· Foreign Corrupt Practices Act 1977
6.Agencies for handling Corruption
· Anti Corruption Bureau
· Central Vigilance Commission
· Central Bureau of Investigation
7. India is Changing & Improving
Yes you again heard it right though unbelievable but India has improved in the Corruptions Perception Index.
As per Transparency International’s Index, India ranked 94th in 2013 improved to 85th in 2014 and 76th in 2015.
8. China faces more corruption cases than India. Yes, China has been placed on 83rd rank below India which is on 76th rank.
- As per the Corruptions Practices Index 2015, Denmark is the least corrupt and Somalia & North Korea is the most corrupt.
- Most popular corruption scams in India, that everyone has probably heard and needs no details;
· Bofors Scandal
· Cow fodder scam
· Telgi scam
· Commonwealth Games
· Coal Allocation
· 2G Spectrum scam
So lets be happy India is improving and we are not alone. However, we need to stand united and pledge to stop this whether in Government Sector or Private. Both are equally important.
(Author CA Piyush Baranwal, DISA, CISA Exam cleared, Certified FAFP(ICAI),Certified in International Taxation(ICAI) can be reached at email@example.com or 9818133880)