MEASURES TO REDUCE

CORRUPTION
PRSENTED BY
 ANGEL
 KRISHNA
 SANA
 SAHANA
 POOJA
 GIRISH
INDIA AN OVERVIEW
ON 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
India
 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 Honest
Avoid
Prevent
Confront
Withdraw
Record
Anti-Corruption Strategy
(cont.)
 Be Honest Avoid
Don’t get involved
Don’t act fraudulently.
Don’t endanger yourself or
 Avoid others.

 Prevent Prevent
Make enquiries if you suspect
Confront: corruption
Indicate the company Take preventive measures to stop
 Confront policies
Indicate the legal legislation
corruption
Don’t instruct, authorize, or condone
corruption

 Withdraw
Withdraw
Record Just get out of
there!
 Record Record the act of corruption
Record the transaction for
accounting purposes
Keep 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’t
as 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