RETA 6447: Anticorruption Seminar
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Transcript of RETA 6447: Anticorruption Seminar
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Anticorruption Seminar, October 2009
RETA 6447:
Anticorruption
Seminar
Genevieve Abel
Office of Anticorruption
and Integrity
Anticorruption Seminar, October 2009
RETA 6447:
Workshop components
Introduction to Integrity
Conducting basic due diligence
Spotting Every Day Red Flags
The costs of corruption:
Political
Economic Social
Environmental
?
:
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The political cost of corruption
Obstructs democracy
popular opinion is not important
justice can be bought
Undermines trust in government
hurts tax collection
Can result in political instability
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The economic cost of corruption
Depletes national wealth
Hinders development of fair marketstructures
Distorts competition
Deters investment
The social cost of corruption
Undermines public trust
in political system
in institutions
in leadership
Causes frustration and apathy
May promote outward migration
:
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The environmental cost
Degradation
Destruction of natural environments
Corruption Poverty
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Bribery: $1,000 billion ($1 trillion) /year
Procurement bribes: $200 billion/year
One Asian country lost $48 billion throughcorruption over the past 20 years,surpassing its foreign debt level.
: $1,000 ($1 )
: $200
20 $48 ,
Global Challenges
Cultural norms
Different understandings of acceptableconduct
Different expectations
Precision of language
Risks in upholding anticorruption initiatives
()
Corruption Perception IndexCountry CPI Ranking CPI Score
Somalia 180 1.0
Afghanistan 176 1.5
Kyrgyzstan 166 1.8
Turkmenistan 166 1.8
Uzbekistan 166 1.8Azerbaijan 158 1.9
Tajikistan 151 2.0
Belarus 151 2.0
Russia 147 2.1
Kazakhstan 145 2.2
Source: http://www.transparency.org/The scores range from 0 (most corrupt) to 10 (no corruption)
180 1.0
176 1.5
166 1.8
166 1.8
166 1.8 158 1.9
151 2.0
151 2.0
147 2.1
145 2.2
: http://www.transparency.org/ 0 ( ) 10 ()
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The Fraud Triangle
motive
rationalizationopp
ortun
ity
to obtain afinancial or
other benefitor to avoid an
obligation.
I didnt thinktheyd catch me
Everyoneelse isdoing it
It wonthurt
anyone
I deserve it!
,
.
,
!
Fraudulent Practice
Any act or omission, including a misrepresentation,that knowingly or recklessly misleads, or attemptsto mislead, a party to obtain a financial or otherbenefit or to avoid an obligation.
,
. - ,
, , , .
Falsified bus ticket
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Corrupt Practice
The offering, giving,
receiving, or soliciting,
directly or indirectly, anything
of value to influence
improperly the actions of
another party.
,
, , ,
.
Bribery
receiving/providing money or a favor in exchange for a
contract or other action.
.
Misaligned doors
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Exposed bars
Gaps in wooden sheets
Coercive Practice
Impairing or harming, or
threatening to impair or harm,
directly or indirectly, any party or
the property of the party toinfluence improperly the actions of
a party.
, ,
, .
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Coercion --Examples
Extortion
* obtaining money or favors through blackmailor threat
Blackmail
* an act intended to manipulate the conduct ofanother
Threat of violence (real or perceived)
--
*
*
()
Collusive Practice
An arrangement between twoor more parties designed toachieve an improper purpose,including influencingimproperly the actions ofanother party.
, , .
Collusion -- Examples
Sharing of information by vendors whilepreparing bids
Bid rotation
Pre-negotiation of award between vendorsand/or Project Management Unit, ExecutingAgency, ADB
--
()
/ , ,
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Company X
Company YCompany Z
Company X
Company YCompany Z
Conflict of Interest
Any situation in which a party has interests that couldimproperly influence that partys performance of officialduties or responsibilities, contractual obligations, orcompliance with applicable laws and regulations.
, , , , .
Sharing principal stakeholders ,
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Ali Baba Printing Alakazaam Printing BeezlebubPrinting WE-BE PRINTING Ali Baba Printing Alakazaam Printing BeezlebubPrinting WE-BE PRINTING
Examples of False Claims
Fake airline tickets
False time sheets
False hotel receipts (exercise)
()
John Not an
John Not an
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Fake Airline Tickets
Background
Resident Mission reported that a consultingfirm submitted fake airline tickets
Red Flags Grossly inflated prices for tickets
Air France tickets were issued thru GarudaIndonesia
Ticket was not in format of Air France tickets
,
Air France ,
Air France
Is the airfare,
Reasonable for
A one-way
economy ticket?
John Not an
EltonJohn
Why were Air FranceTickets Issued by
Garuda Indonesia AirlinesWhen Air France has anOffice in Jakarta?
-
?
John Not an
Air France ,, Air France ?
Findings
Tickets were fake
Elton John was not a Air France travel agent
Further review revealed time sheets werefabricated also
Fake Airline Tickets
Air France
,
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Fraudulent Hotel Receipts Background:
Receipts were submitted by a consultantthrough a consulting firm
Department reported alleged fraudulentreceipts for hotel
Find the Fraud
:
,
FAKE FAKE
Matching Exercise
Time: 15 minutes
Instructions:
Match the terms in the left column with
the definitions in the right column
: 15
:
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Questions
15 minute break 15