CorruptionITP 0912

CorruptionA way to unproperly influence the proceedings and the decision-

making within the society.

Typically, the unlawful use of an official position to gain an advantage in contravention of duty. This can involve the promise of an economic benefit or other favour, the use of intimidation or blackmail. It can also refer to the acceptance of such inducements.

The misuse of entrusted power for private gain.

The objective:

To lubricate the machinery – hindering the functions.

The actors

Two actors – but in reality three• the donor• the receiver• the superior to the receiver

The actThe briber The receiverPromise Is open for the promise

Offer Requires

Handle over Accepts

Bribing or other kinds of incorrect considerations create dependency with the intention to break a confidence to the superior and/or to the community at large.

The bribe• premio, benefit, conditions• money, values, service, loan, gods, contract• travels, hotel, costs at restaurants• job with unreasonable high salary• honors, discount

The benefit no necessarily is of economic value for the receiver, it can be of another kind of attraction.

Conflict of interests

Misuse of power

Why possible?

• the limits are indistinct• the definition does not exist• habits and public opinion

• The superior gives approval• Conditions• Intention• Value• The position of the receiver• The personal relation

Travel - accetable• Needed for the performance of the function• Travel for studies• Conferences, seminars• Qualified content • Gifts – small donations

Travel – not acceptable• Travel with hidden vacation• Vacation• Family members as company• Tickets for theater, movies• Dinner and bar

The fight against corruption• prevention and “public awareness”• better control• cooperation and investigations • measures of adequate follow-ups

Investigation of corruption• Accountibility• Transparency• Control/Audit• Preventive measures

5.428 companies in 40 countries

43% detected fraudsPricewaterhouseCoopers Global Economic Crime Survey 2007

4,2 billion USD

5,7 billion USD

• Fraud/economic crimeThe intentional use of deceit to deprive another of money, property or a

legal right.

• Asset misappropriation (inc. embezzlement/deception by employees)

The theft of company assets (including monetary assets/cash or supplies and equipment) by company directors, others in fiduciary positions or an employee for their own benefit.

• Accounting fraudCompany accounts are altered or presented in such a way that they do

not reflect the true value or financial activities of the company.

• Corruption and bribery (inc. racketeering and extortion)Typically, the unlawful use of an official position to gain an advantage

in contravention of duty. This can involve the promise of an economic benefit or other favour, the use of intimidation or blackmail. It can also refer to the acceptance of such inducements.

• Money launderingActions intended to legitimise the proceeds of crime by disguising their

true origin.

• IP infringement (Intellectual property inc. trademarks, patents, counterfeit products and services, industrial espionage)

This includes the illegal copying and/or distribution of fake goods in breach of patent or copyright and the creation of false currency notes and coins with the intention of passing them off as genuine. It also includes the illegal acquisition of trade secrets or company information.

• 1. Sverige, Danmark, Nya Zealand • 4. Singapore • 5. Finland, Schweiz • 7. Island, Nederländerna • 9. Australien, Kanada

Korruptionsbotten (mest) enligt TI • 180. Somalia • 178. Burma, Irak • 177. Haiti • 176. Afghanistan • 173. Tchad, Guinea, Sudan

Corruption and international cooperation

Consequences?

-The development programme will be less effective and less efficient-There will be less funds for the programmed activities-Questionable competence of staff-Poorer quality

The corruption is a threat against democracy

Deficient democracy feeds corruption

Corruption aggraviate the poverty of the world

Transparency and accountability

Accountable:

I

To be responsible to present to another body what has been done, what actions have been taken and how you have used the power and the resources under your responsibility.

II

Make someone accountable and introduce sanctions or penalty as a response to wrongdoings or not acceptable behaviour.

An unbroken chain of accountability is the foundation of the fight against corruption

Transparency is needed to acheive accountibility

Transparency:To be open and to expose what you have done.

Transparency is a way to fulfill the duty to be accountable.

Formal expressions:- reports, audit

Informal expressions:

- Opendness to present plans, answer questions and give insight into the affairs

Example from Uganda

In the international cooperation

There does not exist any structure that is clear and efficient regarding the financial activities within the cooperation.

Politicians are accounibles to the voters

Politicians are accountible to the voters for the public fundings

In NGOs the board is accountible to the members

In international cooperation it is difficult to hold the politicians accountible to the voters.

A donorstate is financing. But the decisions are taken by the authority in charge – Sida in Sweden. The voters can hardly make the authority accountible. Who is responsible?

The voters do not know the quantity of the resources or what level of funds has been handed over, nor the priorities of the cooperation. The voters do not know the quantity of the resources or what level of funds has been handed over, nor the priorities of the cooperation.

Regarding NGOsThe donors are financing, not the members of the NGO.

Seldom you will find members of the NGO.

The executives of the NGOs have created a world well closed and without access and without clear distribution of responsibilities.

What to do?

The donors have to demand more of accountability and transparency.

A Swedish case