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PREVAILING CORRUPPTION
AND ITS EFFECTS ON SOCIETY
AND REMEDIAL MEASURES
PRESENTED BY
SI SANEESH
WARMING UP
 What do you know about bribery? Why should it
be punished?
 Have you ever traveled in a reservation
compartment without reservation or waitlisted
ticket?
SOME INTERESTING FACTS
 54% of Indian users paid a bribe to at least one of
nine selected service providers in 2010 – TI,2011
 49 % Pakistanis, 11 %Chinese, 62 % Afghans, 4 %
Brazilians, 27% Russians, 63 % Nigerians and 31 %
Mexicans too paid bribes – TI,2011
 In 2012 India has ranked 94th out of 176 countries in
Transparency International's Corruption Perceptions
Index
 India tops the list for black money in the entire world
with almost US$ 1456 billion in Swiss banks.
GOAL
 To make the participants understand about
impact of corruption in our society and its
remedial measures.
OBJECTIVES
 At the end of the session the participants
will be able to tell:
 IMPORTANT DEFINITIONS
 TYPES OF CORRUPTION
 MAJOR AREAS OF CONCERN
 SOME NEWS OF CORRUPTION IN INDIA
 CAUSES OF CORRUPTION
 IMPACT ON SOCIETY
 REMEDIAL MEASURES
 WHAT WE HAVE
 WHAT WE NEED
DEFINITION
 Giving or obtaining advantage through
means which are illegitimate, immoral, and/or
inconsistent with one's duty or the rights of
others.
 Transparency International(TI) define corruption
as “ The misuse of entrusted power
for private gain”
DEFINITION
 Behaviour that deviates from the formal
rule - regarding motives such as wealth,
power, or status.
 Oxford Dictionary defines corruption as ―
“Perversion or destruction of integrity in
the discharge of public duties by bribery or
favour.”
SOME ILLUSTRATIONS
 Design or selection of uneconomical projects
because of opportunities for financial kick
backs and political patronage,
e.g. Realigning rail track to inflate cost
 Illicit payments of "speed money“ to
government officials to facilitate the timely
delivery of goods and services to which the
public is rightfully entitled, such as permits
and licenses,
e.g. transfer of govt. lands
SOME ILLUSTRATIONS
 Misappropriation of confidential information
for personal gain, such as using knowledge
about public transportation routings to invest
in real estate that is likely to appreciate .
e.g. extension of DMRC, location of SEZ & national
highway realignment
 Sale of official posts, positions, or
promotions; nepotism; or other actions that
undermine the creation of a professional,
meritocratic civil service.
e.g. State PWD, Irrigation, NHAI & Central Secretariat
TYPES OF CORRUPTION
SYSTEMATIC: Permeate an entire government or ministry.
e.g. DDA&MCD
INDIVIDUAL: Isolated and sporadic.
e.g. Traffic constable & sanitation inspector
GRAND: Senior officials, major decisions or contracts, and the
exchange of large sums of money and involves
transnational.
e.g.2G Scam & CWG Scam
PETTY: Low level officials, the provision of routine services
and goods, and small sums of money.
e.g. licensing & enforcement
1. AUTOGENIC : Self generating and involves
only perpetrator
2. DEFENSIVE : Compulsive in nature and
victims pay bribes in self defense.
3. EXTORTIVE : This is compensation in
exchange for services.
We can differentiate corruption in
another seven groups
4) INVESTIVE : For future reward and no direct
favor in present.
5) NEPOTISTIC : No direct transfer of money. Just
preferential treatment to relatives and friends.
6) SUPPORTIVE : It supports the existing corrupt
system.
7) TRANSACTIVE : Involves both parties and the
advantage is for both.
CAUSES OF CORRUPTION
 Absolute authority
 Ineffective/antiquated and overburdened
legal system
 Ineffective anti-corruption mechanisms
 In adequate enforcement
 Lack of employment
 Privatization, Liberalization and
Globalization
CAUSES OF CORRUPTION
 Diminishing values in the society.
 Diminishing patriotism.
 Lack of awareness.
 Low literacy rate.
 Lack of effective management.
 Lack of economic stability.
 Lack of effective political leadership.
 Loss of National wealth
 Hindrance and obstruction in development
 Backwardness and Poverty
 Authority and power in wrong hands
 Brain drain
 Inflation
CONSEQUENCES OF CORRUPTION
 Inferior public infrastructure
 Loss of faith in democracy
 Psychological and social disorders
 Environmental degradation
 Rise of anti social elements
CONSEQUENCES OF CORRUPTION
Perception of most corrupt industries in
our country
The 2G spectrum scandal was a political
scandal that occurred in India in 2010–11
where officials in the government of India
were illegally undercharging mobile
telephony companies for frequency
allocation licenses, which they would use
to create 2G subscriptions for cell
phones. The difference between the
money collected and the money which
the law mandated to be collected is
estimated to be 176,645 crore
TOP CORRUPTION SCAMS IN INDA
2G spectrum Scam
On April 25, 2011 Suresh Kalmadi was
arrested by CBI for awarding illegal
contracts to a Swiss firm for Timing-
Scoring-Result (TSR) system for the
2010 Commonwealth Games causing a
loss of Rs 95 crore.
TOP CORRUPTION SCAMS IN INDA
CWG Scam:-
Abdul Karim Telgi began printing fake
stamp paper. He appointed 300 people
as agents who sold the fakes to bulk
purchasers, including banks, insurance
companies and share-broking firms. His
monthly profits have been estimated as
being in the neighborhood of Rs 202
crore .The size of the scam was
estimated to be more than 43,000 Cr
Rupees.
TOP CORRUPTION SCAMS IN INDA
TELGI Scam:-
QUOTATION
If a country is to be corruption free and
become a nation of beautiful minds, I
strongly feel there are three key social
members who can make a difference. They
are the father, the mother and the teacher.
A P J Abdul
Kalam
The duty of youth is to challenge
corruption.
Kurt Cobain
 Value education
 Strong Legislation
 Responsible citizen
 Effective leadership and administration
 Effective and regular vigilance
 Strong Media support( through films, ads, serials)
CURES FOR CORRUPTION
 Loyalty and patriotism
 Transparency appointment and admissions
 Declaration of wealth and assets
 Dedicated and diligent political leaders
 Coordination and control of agencies
 Social organisation
CURES FOR CORRUPTION
LET US SEE WHAT WE
HAVE
LAW AGAINST CORRUPTION IN
INDIA
(i) The Prevention of Corruption Act, 1988
(ii) India and the United Nations Convention against Corruption
2003
(UNCAC)
(iii) The Prevention of Money Laundering Act 2002
(iv) The Foreign Exchange Management Act 1999
(v) The Right to Information Act 2005
(vi) India and the United Nations Convention against Corruption
2003
(UNCAC)
i) Prevention of Corruption ACT
 The Prevention of Corruption Act came into
force in September 1988. It was an
improvisation of the Act of 1947
 Thus if an offence against a public servant
is proved in the court there will be
imprisonment of not less than 6 months
upto 5 years and also the person may be
fined.
ii) Right To Information ACT
 The Right To Information Act (RTI) gives
one all the required information about the
government.
 The Public Information Officer (PIO) is
responsible for collecting all the
information which citizens want and
providing them with the same.
 If the PIO denies to give the information
then he will be penalized and fined up to
Rs.25000
CHIEF VIGILENCE COMMISSION
29
Another potent check on corruption is Central
Vigilance Commission (CVC). Any cases of
corruption or complaints can be reported to
CVC. CVC also creates more awareness
among people regarding the consequences
of giving and taking of bribes and corruption.
ORGANAISATION AGAINST CORRUPTION IN
INDIA
COMTROLLER AND AUDITOR GENERAL
30
Another potent check on corruption is
Comptroller and Auditor General (CAG). This
constitutional body audits every public
money spent by the government. This body
also called as “The watch dog of public
money.”
ORGANAISATION AGAINST CORRUPTION IN
INDIA
ELECTRONIC AND PRINT MEDIA
31
The media has been playing very important
role in every exposure of corruption scams.
By giving an open and transparent flow of
information and fostering a climate of
opinion it effectively checked growing
corruption.
ORGANAISATION AGAINST CORRUPTION IN
INDIA
LET US SEE WHAT WE
NEED
 The passage of the LokPal Bill.
 The Corrupt Public Servants (Forfeiture of Property) Bill.
 Ratification of the UNCAC and transfer of funds lying in secret
bank accounts abroad.
 Integrity Pact
 Notification of the rules under the Benami Transaction
(Prohibition) Act, 1988.
 Social audit
 Electoral reforms to prevent those charge-
sheeted for heinous offences from contesting
electoral office
 Police reforms as per the decision of the
Supreme court of India.
 Strengthening of the prevention of Corruption
Act
 Independent Central Bureau of Investigation
 Lok Ayuktas in all states with adequate powers for
taking action against the corrupt.
 Strengthening of the Central Vigilance Commission.
 Passage of the Judicial Standards & Accountability
Bill for transparency in judiciary.
 Citizens’ charters with penalty clause in all pubic
departments
 Ethical standards to be observed by the corporate
sector
CONCLUSION
 Today we discussed
 What is corruption
 Types of corruption
 Consequences and cures for corruption
 Major scams in India
 Remedial measures for corruption
?
QUESTIONS AND CLARIFICATIONS
THANK YOU

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Corruption

  • 1. PREVAILING CORRUPPTION AND ITS EFFECTS ON SOCIETY AND REMEDIAL MEASURES PRESENTED BY SI SANEESH
  • 2. WARMING UP  What do you know about bribery? Why should it be punished?  Have you ever traveled in a reservation compartment without reservation or waitlisted ticket?
  • 3. SOME INTERESTING FACTS  54% of Indian users paid a bribe to at least one of nine selected service providers in 2010 – TI,2011  49 % Pakistanis, 11 %Chinese, 62 % Afghans, 4 % Brazilians, 27% Russians, 63 % Nigerians and 31 % Mexicans too paid bribes – TI,2011  In 2012 India has ranked 94th out of 176 countries in Transparency International's Corruption Perceptions Index  India tops the list for black money in the entire world with almost US$ 1456 billion in Swiss banks.
  • 4. GOAL  To make the participants understand about impact of corruption in our society and its remedial measures.
  • 5. OBJECTIVES  At the end of the session the participants will be able to tell:  IMPORTANT DEFINITIONS  TYPES OF CORRUPTION  MAJOR AREAS OF CONCERN  SOME NEWS OF CORRUPTION IN INDIA  CAUSES OF CORRUPTION  IMPACT ON SOCIETY  REMEDIAL MEASURES  WHAT WE HAVE  WHAT WE NEED
  • 6. DEFINITION  Giving or obtaining advantage through means which are illegitimate, immoral, and/or inconsistent with one's duty or the rights of others.  Transparency International(TI) define corruption as “ The misuse of entrusted power for private gain”
  • 7. DEFINITION  Behaviour that deviates from the formal rule - regarding motives such as wealth, power, or status.  Oxford Dictionary defines corruption as ― “Perversion or destruction of integrity in the discharge of public duties by bribery or favour.”
  • 8. SOME ILLUSTRATIONS  Design or selection of uneconomical projects because of opportunities for financial kick backs and political patronage, e.g. Realigning rail track to inflate cost  Illicit payments of "speed money“ to government officials to facilitate the timely delivery of goods and services to which the public is rightfully entitled, such as permits and licenses, e.g. transfer of govt. lands
  • 9. SOME ILLUSTRATIONS  Misappropriation of confidential information for personal gain, such as using knowledge about public transportation routings to invest in real estate that is likely to appreciate . e.g. extension of DMRC, location of SEZ & national highway realignment  Sale of official posts, positions, or promotions; nepotism; or other actions that undermine the creation of a professional, meritocratic civil service. e.g. State PWD, Irrigation, NHAI & Central Secretariat
  • 10. TYPES OF CORRUPTION SYSTEMATIC: Permeate an entire government or ministry. e.g. DDA&MCD INDIVIDUAL: Isolated and sporadic. e.g. Traffic constable & sanitation inspector GRAND: Senior officials, major decisions or contracts, and the exchange of large sums of money and involves transnational. e.g.2G Scam & CWG Scam PETTY: Low level officials, the provision of routine services and goods, and small sums of money. e.g. licensing & enforcement
  • 11. 1. AUTOGENIC : Self generating and involves only perpetrator 2. DEFENSIVE : Compulsive in nature and victims pay bribes in self defense. 3. EXTORTIVE : This is compensation in exchange for services. We can differentiate corruption in another seven groups
  • 12. 4) INVESTIVE : For future reward and no direct favor in present. 5) NEPOTISTIC : No direct transfer of money. Just preferential treatment to relatives and friends. 6) SUPPORTIVE : It supports the existing corrupt system. 7) TRANSACTIVE : Involves both parties and the advantage is for both.
  • 13. CAUSES OF CORRUPTION  Absolute authority  Ineffective/antiquated and overburdened legal system  Ineffective anti-corruption mechanisms  In adequate enforcement  Lack of employment  Privatization, Liberalization and Globalization
  • 14. CAUSES OF CORRUPTION  Diminishing values in the society.  Diminishing patriotism.  Lack of awareness.  Low literacy rate.  Lack of effective management.  Lack of economic stability.  Lack of effective political leadership.
  • 15.  Loss of National wealth  Hindrance and obstruction in development  Backwardness and Poverty  Authority and power in wrong hands  Brain drain  Inflation CONSEQUENCES OF CORRUPTION
  • 16.  Inferior public infrastructure  Loss of faith in democracy  Psychological and social disorders  Environmental degradation  Rise of anti social elements CONSEQUENCES OF CORRUPTION
  • 17.
  • 18. Perception of most corrupt industries in our country
  • 19. The 2G spectrum scandal was a political scandal that occurred in India in 2010–11 where officials in the government of India were illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. The difference between the money collected and the money which the law mandated to be collected is estimated to be 176,645 crore TOP CORRUPTION SCAMS IN INDA 2G spectrum Scam
  • 20. On April 25, 2011 Suresh Kalmadi was arrested by CBI for awarding illegal contracts to a Swiss firm for Timing- Scoring-Result (TSR) system for the 2010 Commonwealth Games causing a loss of Rs 95 crore. TOP CORRUPTION SCAMS IN INDA CWG Scam:-
  • 21. Abdul Karim Telgi began printing fake stamp paper. He appointed 300 people as agents who sold the fakes to bulk purchasers, including banks, insurance companies and share-broking firms. His monthly profits have been estimated as being in the neighborhood of Rs 202 crore .The size of the scam was estimated to be more than 43,000 Cr Rupees. TOP CORRUPTION SCAMS IN INDA TELGI Scam:-
  • 22. QUOTATION If a country is to be corruption free and become a nation of beautiful minds, I strongly feel there are three key social members who can make a difference. They are the father, the mother and the teacher. A P J Abdul Kalam The duty of youth is to challenge corruption. Kurt Cobain
  • 23.  Value education  Strong Legislation  Responsible citizen  Effective leadership and administration  Effective and regular vigilance  Strong Media support( through films, ads, serials) CURES FOR CORRUPTION
  • 24.  Loyalty and patriotism  Transparency appointment and admissions  Declaration of wealth and assets  Dedicated and diligent political leaders  Coordination and control of agencies  Social organisation CURES FOR CORRUPTION
  • 25. LET US SEE WHAT WE HAVE
  • 26. LAW AGAINST CORRUPTION IN INDIA (i) The Prevention of Corruption Act, 1988 (ii) India and the United Nations Convention against Corruption 2003 (UNCAC) (iii) The Prevention of Money Laundering Act 2002 (iv) The Foreign Exchange Management Act 1999 (v) The Right to Information Act 2005 (vi) India and the United Nations Convention against Corruption 2003 (UNCAC)
  • 27. i) Prevention of Corruption ACT  The Prevention of Corruption Act came into force in September 1988. It was an improvisation of the Act of 1947  Thus if an offence against a public servant is proved in the court there will be imprisonment of not less than 6 months upto 5 years and also the person may be fined.
  • 28. ii) Right To Information ACT  The Right To Information Act (RTI) gives one all the required information about the government.  The Public Information Officer (PIO) is responsible for collecting all the information which citizens want and providing them with the same.  If the PIO denies to give the information then he will be penalized and fined up to Rs.25000
  • 29. CHIEF VIGILENCE COMMISSION 29 Another potent check on corruption is Central Vigilance Commission (CVC). Any cases of corruption or complaints can be reported to CVC. CVC also creates more awareness among people regarding the consequences of giving and taking of bribes and corruption. ORGANAISATION AGAINST CORRUPTION IN INDIA
  • 30. COMTROLLER AND AUDITOR GENERAL 30 Another potent check on corruption is Comptroller and Auditor General (CAG). This constitutional body audits every public money spent by the government. This body also called as “The watch dog of public money.” ORGANAISATION AGAINST CORRUPTION IN INDIA
  • 31. ELECTRONIC AND PRINT MEDIA 31 The media has been playing very important role in every exposure of corruption scams. By giving an open and transparent flow of information and fostering a climate of opinion it effectively checked growing corruption. ORGANAISATION AGAINST CORRUPTION IN INDIA
  • 32. LET US SEE WHAT WE NEED
  • 33.  The passage of the LokPal Bill.  The Corrupt Public Servants (Forfeiture of Property) Bill.  Ratification of the UNCAC and transfer of funds lying in secret bank accounts abroad.  Integrity Pact  Notification of the rules under the Benami Transaction (Prohibition) Act, 1988.  Social audit
  • 34.  Electoral reforms to prevent those charge- sheeted for heinous offences from contesting electoral office  Police reforms as per the decision of the Supreme court of India.  Strengthening of the prevention of Corruption Act  Independent Central Bureau of Investigation
  • 35.  Lok Ayuktas in all states with adequate powers for taking action against the corrupt.  Strengthening of the Central Vigilance Commission.  Passage of the Judicial Standards & Accountability Bill for transparency in judiciary.  Citizens’ charters with penalty clause in all pubic departments  Ethical standards to be observed by the corporate sector
  • 36.
  • 37. CONCLUSION  Today we discussed  What is corruption  Types of corruption  Consequences and cures for corruption  Major scams in India  Remedial measures for corruption