Different Kinds of Corruption
Corruption strikes
everywhere and in many forms. In fact, it can be done in all business
transactions. There are many holes everywhere where people can use it for their
opportunity to steal. Therefore, the lists that we mention here are few
examples of forms of corruption. There are many more. But our intention here is
not to mention all those lists but focusing on how we are going to solve
corruption problems which is society’s job, not only government’s job. The
following are different kind of corruptions that are commonly being done in the
government office and even in the private organizations.
Bribery
Bribery is living within bureaucracy. A bureaucracy is defined as "a body of
non elective government officials" and/or "an administrative
policy-making group Merriam Webster).
Historically, bureaucracy referred to governmental administration managed
by departments staffed with nonelected officials (The Free Dictionary). In modern parlance, bureaucracy refers to the
administrative system governing any large institution. Since being coined, the
word "bureaucracy" has developed negative connotations for some (Raadschelder, 1998). Bureaucracies are criticized when they become
too complex, inefficient, or too inflexible (Johnson & Libecab, 1994). The dehumanizing effects of excessive
bureaucracy were a major theme in the work of Franz Kafka, and were central to
his masterpiece The Trial (Luban, Strudler, Wasserman, 1992). The
elimination of unnecessary bureaucracy is a key concept in modern managerial
theory (Daniel, Arthur, 2009), and has been a central issue in numerous
political campaigns (garett, 2006).
Bureaucracy may not be necessarily bad
because it has a role in establishing systematic processes. Such systematic
processes are needed to avoid favoritism and even nepotism. Max Weber had been defending such bureaucracy
because for him bureaucracy constitutes the most efficient and rational way in
which human activity can be organized, and that systematic processes and
organized hierarchies were necessary to maintain order, maximize efficiency and
eliminate favoritism (Swedberg & Agewel, 2005). However, excessive bureaucracy becomes a
problem in practice. Transactions, decisions have become too long to get the
result. There are so many layers and it has to go through several steps and
often time, the officials who are in the authority to approve are taking their
time to make decisions. The tendency is that people look for short cut which is
to bribe the officials who are in the position to make a decision.
Let
us take some examples bribery within the bureaucracy. In the 2008 Public Sector
Integrity Survey, the Supreme Court ranked the lowest in integrity in
comparison to the other public services in Indonesia (Komisi
Pemberantasan Korupsi, Integritas Sektor Publik Indonesia Tahun 2008). The courts were viewed to make decisions unfairly and have
high unofficial costs. Evidence of corruption within the civil service comes
from surveys conducted within the sector. Some surveys found out that almost
half were found to have received bribes. Civil servants themselves admit to
corruption.
Next
example is India. Bribery is also a major issue that adversely affects its
economy (Singh, 2010). A study conducted by Transparency International in year
2005 found that more than 62% of Indians had firsthand experience of paying
bribes or influence peddling to get jobs done in public offices successfully
(Transparency International). In its
study conducted in year 2008, Transparency International reports about 40% of
Indians had firsthand experience of paying bribes or using a contact to get a
job done in public office (India Corruption Study, 2005).
Nepotism
Nepotism
is one our social ills. It is a form of selfishness. People always find ways if
there are possibilities in which things or opportunities may not be shared to
others but only to our family members or friends. This practice has been rooted
in the politics, business and even in the Church. The politicians or managers
tend to hire their own children or relative to occupy certain position. In fact the practice is originated from the Church.
The term comes from Italian word nepotismo,(Dictionary.com)
which is based on Latin root nepos meaning nephew. In the Middle Ages
some Catholic popes and bishops, who had taken vows of chastity, and therefore
usually had no legitimate offspring of their own, gave their nephews such
positions of preference as were often accorded by fathers to son (New Catholic
Dictionary). The term has been applied to all sectors of business and politics.
However the Church has been banned from such practice since Pope Innocent XII
when he issued the bull Romanum decet Pontificem in 1692 in which the papal
prohibited popes in all times from bestowing estates, offices on any relatives,
with the exception that one qualified relative could be made a cardinal (Anura,
2010). It is all for personal interest and
dynasty.
The purpose of nepotism is not only for political
interest in which the dynasties retain power but also for economic benefits.
People do not want to share the benefits to others. For the purpose they need
to continue to stay in power and perpetuating their dynasty. Naturally people
do not want to let it go and share power to other people. They hold on to the
power until the last generation. Evidently politicians train and appoint their
own children or member of the clan to any position for them to continue
controlling the state, province, districts, and municipalities and up to the
barangays. Nepotism can also occur within
organizations, when a person is employed due to their familial ties. It is
generally seen as unethical, both on the part of the employer and employee.
There may, however, be valid reasons for choosing to employ within the family,
such as a greater expectation of loyalty.
Embezzlement
Violation
of trust always happens, not only in government offices but also in private
organizations. People tend to misuse the fund entrusted to their care for their
personal advantage. This is the case of those who are entrusted with financial
matters. Thus embezzlement is the
misappropriation of funds that have been entrusted to one for care or
management (http://www.thefreedictionary.com/embezzlement). People take money
for one’s own use in violation of a trust which is actually owned by someone
else. In the case of the government, people pay their taxes for the purpose of
public service but what happen is that the persons in government use the money for
their own pocket instead of public service. In the private sector, managers, the
financial chief executive are assigned to manage the finance of the
organization but they use it for building their mansions. In the case of bank
tellers, they collect the money of depositors and deposit it on their own
account. Embezzlement
is distinguished from swindling in that swindling involves wrongfully obtaining
property by a false pretense, such as a lie or trick, at the time the property
is transferred, which induces the victim to transfer to the wrongdoer title to
the property.
Embezzlement is performed in a manner that is
premeditated, systematic and/or methodical, with the explicit intent to conceal
the activities from other individuals, usually because it is being done without
the other individuals' knowledge or consent. Often it involves the trusted
individual embezzling only a small proportion or fraction of the total of the
funds or resources he/she receives or controls; in an attempt to minimize the
risk of the detection of the misallocation of the funds or resources. Often
times it is done in different ways such as falsification of records, tampering
of receipts, or creating a false vendor account, and to supply false bills to
the company being embezzled so that the checks that are cut appear completely
legitimate. Yet another method is to create phantom employees, who are then
paid with payroll checks. When successful, embezzlements continue for years without
detection (Wikipedia). These activities are done not only one time but it is usually
a practice habitually performed by those who are in the authority and those who
are in charge of the funds. They have mastered their way on how to do it. Embezzler
knows that taking a big sum at one time can be noticeable immediately. They
choose to do it little by little to avoid detection. These activities can only
be detected through auditing which is often time done only once a year.
Surprise always happen after the audit when it is found out that a lot of money
have been stolen by individual persons. The head ache comes in on how to solve
or return the money. Often time it is not that easy to take it back, it has to
go through the legal procedures and taking another cost to settle the problem.
Singer (1987) argued that embezzlement is a crime
against ownership; that is, the owner's right to control the disposition and
use of the property. The conversion element requires a substantial interference
with the true owner's property rights. However laws are different in different
countries. In some countries, criminalization would depend not on the activity
of embezzlement but on the amount he/she has stolen. The law determines how
much money is to be considered as a criminal offense. These laws can discourage
or encourage people to embezzle.
Extortion
Extortion
is also called exaction. It is an act of obtaining money, property, or services
from a person, entity, or institution, through coercion. Extortion is commonly
practiced by organized crime group. The actual obtainment of money or property
is not required to commit the offense. Making a threat of violence which refers
to a requirement of a payment of money or property to halt future violence is
sufficient to commit the offense. Exaction refers not only to extortion or the
unlawful demanding and obtaining of something through force but additionally,
in its formal definition, means the infliction of something such as pain and
suffering or making somebody endure something unpleasant (http://legal-dictionary.thefreedictionary.com/Extortion, retrieved, May
09, 2014). Extortion is distinguished
from robbery. In robbery, whether armed or not, the offender takes property
from the victim by the immediate use of force or fear that force will be
immediately used (as in the classic line, "Your money or your life.").
Extortion, which is not limited to the taking of property, involves the verbal
or written instillation of fear that something will happen to the victim
if they do not comply with the extortionist's will. Another key distinction is
that extortion always involves a verbal or written threat, whereas robbery does
not. In blackmail, which always involves extortion, the extortionist threatens
to reveal information about a victim or their family members that is
potentially embarrassing, socially damaging, or incriminating unless a demand
for money, property, or services is met (MSN-Encarta).
However,
nowadays, extortion is not necessarily referred to coercion; the term extortion
is often used metaphorically to refer to usury. It is also often used loosely
to refer to everyday situations where one person feels indebted against their
will, to another, in order to receive an essential service or avoid legal
consequences.
Neither
extortion nor blackmail requires a threat of a criminal act, such as violence,
merely a threat used to elicit actions, money, or property from the object of
the extortion. Such threats include the filing of reports (true or not) of
criminal behavior to the police, or proper authority, or revelation of damaging
facts ((http://legal-dictionary.thefreedictionary.com/Extortion,
retrieved, May, 09, 2014).
Many times extortions are
committed by the Public Officials and individual persons who have the power to
damage reputation. The essence of extortion by a public officer is the
oppressive use of official position to obtain a fee. For example, a commission
on audit that is tasked to audit all expenses of all government offices. Many
anomalies are not exposed because the auditors are paid not to reveal the
anomalies. Or let us take an example of polices who are assigned to oversee the
highway traffic. When the traffic officers caught the drivers who violated the
rules of traffic, the police often asked the drivers to choose, either to pay
certain amount to them or face the consequences of revoking or confiscating the
license and pay certain amount at designated offices. Violators tend to choose
to pay certain amount to them rather than license is revoked or confiscated. In
this situation many violators are set free. Media is another example. Often
time media is not revealing certain anomalies in different offices committed by
public officials because they are paid.
Protection
Corruption is performed in many
forms with different scheme. Protection rackets are not
the same as extortion rackets. In an extortion racket the racketeers agree not
to attack a business. In a protection racket the racketeers agree to defend a
business from any attack. However, they may threaten to attack or attack the
business if it denies protection (http://en.wikipedia.org/wiki/Protection_money,
retrieved, May 14, 2014). Extortion is not necessarily done by criminal or
organized crime group but it can be done by the police. Extortion is usually is defined as extracting
some amount from an entity by a criminal, gang leader,
or government official to 'protect' the entity from other criminals, trouble
makers, or regulatory agencies. Its demand is accompanied by an express or
implied threat that its non-payment will bring great harm to the non-payer.
(http://www.businessdictionary.com/definition/protection-money.html#ixzz31OGpPhh7, retrieved, May, 11, 2014).
Protection activities are done in
many places. Let us see some places or countries that are mentioned in several
news papers to support our claim that protection money is done not only by
criminals but also by the police. In southern Italy, the pizzo is protection
money paid by a business to the Mafia, usually coerced and constituting extortion.
The term is derived from the Sicilian pizzu ('beak'). To wet
someone's beak is to pay protection money. The practice is widespread in
Southern Italy, not only by the Sicilian Cosa Nostra, but also by the
‘Ndrangheta in calabria and the Camorra in Campania (http://en.wikipedia.org/wiki/Pizzo_(extortion,
retrieved, May 14, 2014). In the Philippines, NPA (New People’s Army) is
able to maintain its survival and finance their operation by receiving money
from businesses and even from politicians as pointed in the report of Depasupil
(2014) in “The Manila Times”. In his report, based on the information given by
the military he revealed that the mining companies have been paying protection
money to the NPA. (Depasupil, 2014). Last May 1, 2013, PNP Chief, General Alan Purisma advised people not to vote the
politicians who are paying protection money to the NPA (GMA
News Online,May, 2013) .
Protection
money is not only committed by organized crime like Mafia but even the police.
Take several examples: a Chicago police officer pleaded guilty to stealing
$5,200 in cash that he thought belonged to a drug dealer. But the money was
really part of an undercover sting. Wentworth District tactical unit Officer
Kallatt Mohammed also admitted in his plea deal, entered in federal court, that
he took protection money from heroin and crack dealers at the Ida B. Wells
public housing complex on the South Side in 2007 and 2008. (
http://www.infowars.com/chicago-cop-admits-taking-protection-money-from-drug-dealers/
retrieved, May 20, 2014).
In Washington D.C, the club
owners have to pay the police for protection as indicated in the report of Rend
Smith (2011) in Washington City paper. According to the report, since 2006,
various club and bar owners have been hiring "reimbursable details."
Some have had no choice. If a place attracts the ire of the Alcoholic Beverage
Control Board or the police by, say, having a rowdy crowd or violent patrons,
they could be required to hire a detail. The hourly rate is a fat $55.71 per
officer, and each detail is made up of at least two cops. The officers are paid
overtime wages. Any money left over gets rather mysteriously absorbed into the
Metropolitan Police Department (
http://www.washingtoncitypaper.com/blogs/citydesk/2011/01/28/club-owners-to-pay-more-protection-money,
retrieved, May 16, 2014
).
Theft
Corruption is in many forms.
Another form is theft. In common usage, theft
is the taking of another person's property without that person's permission or
consent with the intent to deprive the rightful owner of it (Merriam Webster
and Legal-Dictionary). The word is also used as an informal shorthand term for
some crimes against property, such as burglary, embezzlement, larceny, looting,
robbery, shoplifting, library theft and fraud. In other words, this is another
term for stealing. Theft often happens in the offices where employees or public
officials use the property of the office not for official business assigned to
him/her but for her/his own pocket/interest. Examples: employees use the
computer of the office not for business purposes but for writing their own
proposals. Or using petty cash fund or budget for the office not for what is
intended for but for personal needs which is not related to the office
function. Theft may be considered small sometimes but when it is done regularly,
becoming a habit, then it will be accumulated. As a result, assets are eroded
and results are not delivered and public service is sacrificed.
Solving Corruption is the Role of
Government and Society
We have already
identified several reasons why corruption exist and these are lack of moral
values, lack of control and supervision as a result of over trust, weak
implementation of policies and weak leadership, partly bad incentives and
living standards, culture. Thus the solution to those problems would be the job of the government and individual citizens.
On The part of Government
1.
Sound
Moral Architecture. In any organization, core values are important.
These core values are not just for decorations which are placed on the wall
without being implemented. There must be program within the organization to
implement and to oversee that those values are being practiced or lived by the
member of the organization. A moral compliance officer must be assigned and
programs or trainings related to the understanding and implementation of those
values must be established.
2.
Strong Leadership. Strong leadership means that the
leader should not bend the policies to fit his convenience or the convenience
of particular individual or group. Implement the policies and punish those who
violate the policies. Those who are stealing, see to it that they are
investigated and if found guilty, must be jailed. No compromise, no favoritism.
3.
Strict internal
control in each bureaucracy. In each department, there must be internal control
to monitor the whole operation and to check whether the operation is still in
the right track. Proper system for check and balance must be established.
However, corruption happens not only done inside the office but also outside of
the office which is hard to be monitored.
4.
Lifestyle check. Things that
cannot be monitored within the organization can be done through life style
check. Many officials have an extravagant lifestyle which is beyond the income
that they received monthly. Such lifestyle signifies something fishy that there
is another source of income. Find out what another source of income is.
Included in the lifestyle check are their family members such as children and
their relatives.
5.
Individual
screening and monitoring. When someone is hired, the executive must require
the individual person to submit his assets and liabilities and his net worth.
Through such system, the executive monitor the development and the growth of
his assets. This is to find out if the growth is equivalent to his monthly
income or not. Anything that shows otherwise, it means that something comes in
through unusual means and it means that an inquiry must be done.
6.
Raise the
salaries and incentives. People are finding ways to meet the needs of everyday
life. When the salary is not enough, employees will find ways to raise money
for their survival. If they have the opportunity inside the office in which
they can use their office and their position to make money for themselves, then
they will do. This is a crucial job for a manager to monitor the living
standards of common people in the locality and to adjust or to raise the
salaries and incentive to meet the current living standards.
7.
Integrity Agency/Commission. As a sign of
strong leadership, moral leadership and political will is to establish
Integrity Agency. Such agency is assigned to clean the organization and
departments from all kinds/forms of corruption including persecuting those who
have violated the law. There must be no favoritism. The agency must be
independent which is not attached or supervised by any other agency to ensure
its independence and integrity in doing their job as corruption eradicators. Independence
means independence from the control of the President and the Supreme Court. They
should have their own rules on how to persecute a case.
8.
Committed human capital. In my view, whatever, policies, laws written to curb corruption, it will always be dependent on the individual persons. The very crucial point here is committed human capital. The main question is: do we have committed individuals on the lists to do the job to the highest integrity as possible? Thus committed individuals are not only equipped by their skills, commitment but more so, their values, moral values. Therefore, it is very important that screening process or recruitment process must include examination of values and background check if the person deserves to be in certain position.
9.
Whistleblower law. One of the reasons why individual citizen does not come out to reveal the corruption is their safety. People are afraid of their life being in danger. It is better to stay safe rather than going into unnecessary troubles. Unless the state guarantees their security, they would not come out. Therefore laws for whistleblowers must be made.
10.
Whistleblower’s Incentive. Whistle blowing job is a risky job. There are a lot of things to sacrifice. The whistle blowers sacrifice their time, work and their life. Someone who is coming out must be considered a hero. They must be rewarded. Prize money is not only given to the one who is willing to expose the identity of the criminal but also the one who expose the corruption.
On the part of Society
