CHAPTER 4

THE KINDS OF CORRUPTION

Corruption has been defined in many ways and in many forms. In this section, it is
defined as requesting, offering, giving, or accepting, directly or indirectly, a bribe or any
other undue advantage or prospect thereof, which distorts the proper performance of any
duty or behavior required of the recipient of the bribe, the undue advantage of the prospect
thereof (Art. 3 of the Civil Law Convention on Corruption ETC 174).

POLICE CORRUPTION

Police corruption is pervasive in almost all parts of the globe. As a matter of fact, it may
be considered as an evil that slowly and extensively eats up into the integrity of people and
nations. Many citizens everywhere no longer believe in the police as their protectors for in
many, many cases they violate the rights of people. Worst, these practices remain
unpunished and uncontrolled even if so widely spread that it is almost accepted as a way of
life by a frustrated citizenry.

Some people believe that police corruption is already institutionalized – and said to be
the rule, rather than the exception. This is a result of a seeming code of silence that exists,
where members of the police force remain mum about corruption in their ranks, to prevent
exposing the perpetrators – often out of convenience, at times out of fear, but pervasively
because it enriches them. Most, if not all, with some exceptions, live by the rule, that
“there is honor among thieves.”

Police corruption as written about in so many books and articles – is a specific form of
police misconduct designed to gain personal aggrandizements such as monetary gains or
career advancements in exchange for not pursuing, or selectively pursuing an investigation
or arrest, or even closing their eyes to evident crimes being committed openly in a society.

A most common misdemeanor is soliciting and/or accepting bribes in exchange for

keeping quiet about organized crimes such as drug syndicates, prostitution rings, illegal
gambling like “jueteng”, or to set free traffic violators. Often, some policemen even plant
evidences of criminal misdoings and offer to free their victims for a fee which usually
consists of a huge sum of money or even sexual favors. In certain instances, falsified
evidences are used to convict suspects – as criminal convictions frequently serve as the
basis of promotions of juicy positions.

While most police forces have their own internal affairs group to investigate alleged
police corruption and misconduct, it is not a common occurrence for members of such police
force to be found guilty for one reason or another.

Corrupt policemen are distinguished internationally into two types, who through abuse of
the use of their authority, are generally referred to as:
1. Man-Eaters – those who aggressively use their police powers for personal gain
2. Grass-Eaters – those who simply accept payoffs that come or are thrown their way as
members of the police force.
Classification of Police Corruption
 Corruption of authority - police officers receiving free drinks, meals, and other gratuities.
 Kickbacks - receiving payment from referring people to other businesses.
 Opportunistic theft from arrestees and crime victims or their corpses.
 Shakedowns - accepting bribes for not pursuing a criminal violation.
 Protection of illegal activity - being "on the take", accepting payment from the operators
of illegal establishments such as brothels, casinos, or drug dealers to protect them from
law enforcement and keep them in operation.
 "Fixing" - undermining criminal prosecutions by losing traffic tickets or failing to appear
at judicial hearings, for bribery or as a personal favor.
 Direct criminal activities of law enforcement officers themselves.
 Internal payoffs - prerogatives and perquisites of law enforcement organizations, such
as shifts and holidays, being bought and sold.
 Frame-up - the planting or adding to evidence, especially in drug cases.

POLITICAL CORRUPTION

Some nations exists under a “kleptocracy” – which is a reality in countries that are under
a state of political corruption – that is they are under a rule of thieves.

Political corruption is the use of legislated powers of government official for illegitimate
private gain. It is an illegal act by a government authority that is directly related to his
official duties which does not include:
 Misuse of government powers to repress political opponents
 General police brutality
 Illegal acts of private persons or corporations not directly involved with the government

TYPES OF CORRUPTION

1. Bribery
 There are always two participants in this – the bribe giver and the bribe taker who
are equally guilty as the other.
 In some cultures, corruption is so extensive and pervasive that makes it imperative
for people to engage in bribery in order to stay in business or to survive
 Bribes are demanded by government officials to: (1) do something he is already paid
by this government to do; and (2) bypass laws and regulations
 Bribery may be Active and Passive
 Active – the promising, offering, or giving by any person, directly or indirectly, of
any undue advantage (to any public official) for himself or herself, or for anyone
else, for him or her to act or refrain from acting in the exercise of his or her
functions. (Art. 2, Criminal Law Convention on Corruption – ETS 172 – of the
Council of Europe)
 Passive – the request or receipt (by any public official) directly or indirectly, of
any undue advantage, for himself or herself, or for anyone else, or the acceptance
of an offer or a promise of such an advantage, to act or refrain from acting in the
exercise of his or her functions. Art. 3 of the Criminal Law Convention on
Corruption –ETS 173)
2. Trading in influence or Influence Peddling
 A situation where a person sells his or her influence over the decision process
involving a third party (person or institution)
 Tri-Lateral Relation – involving three parties and from a legal point of view – the role
of the third party (target of the influence) does not really matter although he or she
can be an accessory in some cases.
  Influence peddling and extreme and poorly regulated lobbying are hard to distinguish
- where for instance – law or decision makers can freely sell their vote; decision
power or influence to those lobbyists who offer the highest retribution, including
where for instance the latter act on behalf of powerful clients such as industrial
groups who want to avoid the passing of certain environmental, social, or other
regulations perceived as too stringent, etc.
 Influence peddling and sufficiently regulated lobbying because it becomes possible to
provide for a distinctive criterion and to consider that trading in influence involves
the use of “improper influence.”

3. Graft
 Only requires that the government official gains something of value, not part of his
official pay, when doing his work which is unlike bribery which must include to
influence or be influenced by another for personal gain.
 Large Gifts – qualify as graft and most nations have laws against it (a gift of over
$200 to the USA President is considered to be a gift to the Office of the Presidency
and not to the President himself.) If the outgoing President wants to keep the gift, he
has to buy it.
 Zoning – another practice of graft wherein a politician who has knowledge of planned
development before it is publicly known buys land and sells it at a significant profit
(similar to insider trading in business)

4. Patronage
 Favoring or appointing political supporters to government positions even if they are
not qualified in order to pay for the support given to his regime
 Legitimate – when top officials are changed in order for a newly elected government
to effectively implement its policies.
 Nondemocracies – many are appointed to select jobs based more on the loyalty of the
person rather than his ability to perform such as Sunni Arabs of Saddam Hussein, the
nomenklatura in the Soviet Union, or Junkers in Imperial Germany.

5. Nepotism and Cronyism

 Nepotism - refers to favoring relatives with juicy positions, etc.
 Cronyism – favoring personal friends which is a form of illegitimate private gain and
may be combined with bribery such as when an official controlling the regulations
affecting a business demands that the latter should employ a relative of the former.
 Extreme Example of Cronyism or Nepotism – happened in North Korea or Syria where
an entire state is inherited.
 Old Boy Network – appointees to official positions are selected only from a closed and
exclusive social network – such as the alumni of a particular university – instead of
appointing the most competent ones.
 Illegitimate Use of Official Powers – a corruption practice where an official seeks to
harm enemies such as when trumped-up charges are brought up against journalists
or writers who bring up politically sensitive issues such as the acceptance of bribes by
an official.
 Indian Political System – passes on leadership of national or regional parties from
generation to generation creating a system in which a family holds the center of
power such as the Dravidian parties of South India.
6. Electoral Fraud
 Illegal interference with the process of an election which affect vote counts to bring
about an election result either by increasing the vote share of the favored candidate
or depressing the vote share of rival candidates or both
 Voter Fraud – another name for electoral fraud which includes illegal voter
registration, intimidation at polls and improver vote counting.

7. Embezzlement
 Outright theft of entrusted funds such as when a municipal treasurer pockets a
portion or all of its daily collections or revenues
 Misappropriation of property such as when a government car is used for private
purposes such as bringing a child to school or using it for family excursion
 Illegitimate use of entrusted government resources such as when a government
official hires workers to build or renovate his own house and pays them with
government money or makes it appear that is a legitimate endeavor or contract with
the government concerned.

8. Kickback
 A share of an official of misappropriated funds allocated from his or her organization
involved in corrupt bidding.
 A government or a corporate official in-charge of the bidding or contracting for a
project may award a contract to a company that is not the best bidder or allocate
more than they deserve
 The awarded company benefits, and in exchange for betraying the public, the official
receives a kickback payment, which is a portion of the sum the company receives
 Bid Rigging – a situation where a connivance exists between the official in charge-of-
the-bidding and the bidder or between the bidders themselves to ensure award of a
bid to a certain company
 The sum may be all or a portion of the difference between the actual (inflated)
payment to the company and the (lower) market-based price that would have been
paid had the bidding been competitive
 May involve any situation in which people either in government or otherwise, are
entrusted to spend funds that do not belong to them and become susceptible to this
kind of corruption
 Common also in the Pharmaceutical Industry where many doctors and physicians
receive pay in return for added promotion and prescription of the drug sold by
companies concerned.

9. Unholy Alliance
 A coalition among seemingly antagonistic groups for an ad hoc or temporary or
hidden gain of whatever kind
 Like patronage, it is not necessarily illegal, but unlike the former, its deceptive nature
and often great financial resources, can be very dangerous to public interest
 “To destroy this invisible government, to dissolve the unholy alliance between corrupt
business and corrupt politics.” – (Theodore Roosevelt – former US President) was one
of the earliest user of the phrase.

10.Involvement in Organized Crime

 Huang Jinrong, was simultaneously a police chief of Shanghai and a “gang boss” who
cooperates with Du Yuesheng, a local gang ringleader – to keep the flow of profits
from gambling dens, prostitution, and protection rackets.
  Manuel Noriega (Panama) governed under a “narcokleptocracy” – a corrupt
government profiting on illegal drug trade – but was later captured by US when it
invaded Panama.

11.Extortion
 A criminal offense which occurs when a person unlawfully obtains money, property, or
services from a person, entity, or institution through coercion. Sometimes referred to
also as outwresting, exaction, or protection.
 Protection – making a threat of violence to require the payment of money or
property to stop future violence.
 Exaction – inflicting pain and suffering or making a person endure something
unpleasant in addition to extortion or unlawful demanding of something through
force.
 Extortion may be committed across a computer system, by phone, or by mail or in
using any instrument and requires that the person sent the message willingly and
knowingly even if it is not received by the intended recipient.

JUDICIAL CORRUPTION

The Two Categories of Judicial Corruption

There are two categories of judicial corruption namely: (a) political interference in the
judicial process by the legislative or executive branch; and (b) bribery.

The importance of an independent judiciary cannot be overemphasized. Everyone loses

when justice is corrupted, particularly the poor, who are forced to pay bribes they cannot
afford.

Transparency International’s latest global survey of attitudes towards corruption reveals

that in more than 25 countries, at least one in 10 households had to pay a bribe to get
access to justice.

Corruption in the judiciary includes any inappropriate influence on the impartiality of

judicial proceedings and judgments and can extend to the bribing of judges for favorable
decisions, or no decision at all.

Judicial corruption includes:

 the misuse of judicial funds and power (ie. nepotism or manipulation of contracts for
court construction and equipment)
 biased case allocation and bias in other pre-trial procedures (ie. court clerks bribed to
"lose" files and evidence)
 influence of any trial or court settlement, and the enforcement - or not - of court
decisions and sentences

Bribery, the other dark thread of judicial corruption, can occur throughout the fabric of
the judicial process.

As 32 country reports in the Global Corruption Report demonstrate, corruption by

different actors has a distinct effect on the judicial system and contributes to its
deterioration and the end of public trust.
Judges may accept bribes to:
 delay or accelerate cases
 accept or deny appeals
 influence other judges or simply to decide a case in a certain way

Court officials may seek bribes for services that should be free.

Lawyers
 may charge additional “fees” to expedite or delay cases, or to direct clients to judges
known to take bribes. Factors affecting the vulnerability to bribery of judges and other
court personnel include:
 poor salaries
 insecure working conditions (including unfair promotion and transfer processes)
 a lack of continuous training

CORRUPTION BY COUNTRY

Different nations have different degrees of corruption. The least corrupt countries
according to the 2009 Corruption Perceptions Index are New Zealand, Denmark, Singapore,
Sweden and Switzerland while the most corrupt are Iran, Sudan, Myanmar, Afghanistan and
Somalia.

Corruption in Local Government

The term local government can mean many different things depending on the nation
involved. In the Philippines, it usually refers to governance in a baranggay, municipality,
city, or province.

The local public officials often misuse or abuse their power for dishonest or unlawful gain
which can aptly be described as corruption practices.

Corruption opportunities abound in local setting because of the many personal

relationships involved and the degree of trust given to local government officials. Generally
there are several types of corruption found in local governments:
 Bribery – offering money, goods, or services to gain an unfair advantage such as to
influence a person’s opinion, action or decision, reduce fees, speed up government
contracts, or change outcomes of legal processes.
 Extortion – threatening or inflicting harm to a person, his reputation, or property to
unjustly obtain money, actions, services, or other goods such as blackmail.
 Embezzlement – illegal taking or appropriating money or property entrusted to a person
but is owned by another or what is referred to as graft.
 Graft – unlawfully using public funds for personal purposes or gains.
 Nepotism – is the practice of inclination of favoring a group or a person who is a relative
in the grant of promotions, jobs, raises, and other benefits to employees – often given
without regard to the actual abilities of persons’ concerned.
 Patronage – granting of favors, contracts, or appointments to positions by a local
government official or a candidate for a political office in exchange for political support
which usually disregards formal rules in favor of using personal channels to gain an
advantage.
DEMOGRAPHIC FACTORS CAUSING CORRUPTION

There are several factors that can encourage the commission of corruption within local
governments. Some of them are entwined or interrelated or can lead to other factors which
can cause greater corrupt practices.
Religion
Some religious denominations or groups favor certain politicians during election time and
its members are susceptible to beneficiaries of the patronage system when the latter wins
or is elected into office. In cases, where religions are involved, corruption tends to be
lesser. Generally, therefore, the less aware and less vigilant these groups are, the greater
the corruption tends to be.

Race & Class

Social and urban segregation and abuse of political power in local government can lead
to more corrupt local officials. The different factions which have many different wants,
needs, and ideas constantly grapple against each group to get more from a local
government.

Socially, racially, or ethnically divided localities tend to have more corrupt local officials
and less organized systems. The local government will tend to forego local formal systems
in dealing with each group that it favors more than the others can present more possibilities
for greater corruption as the lesser the systems are used the more the practices are left
unnoticed.

Size of a Locality

Bigger localities tend to encourage greater corruption as they tend to have more local
officials whose activities are more difficult to monitor to prevent unlawful practices. The
likelihood of getting caught also becomes less because of this and may, therefore,
encourage more officials may be tempted to or actually become dishonest.
Condition of the Local Economy

Generally, the poorer the economy, the greater the encouragement for political
corruption and leads to increased levels of poverty which further makes escape from
poverty more than difficult. Reliance on institutional loans for local projects is higher which
also increases the opportunities for kickbacks and other corrupt practices.

Lower economic levels usually give rise to lower salaries which leads to greater
tendencies for local officials to engage in corruption, especially embezzlement, to take care
of their necessities and wants. It also means lower wages for the citizens who are easily
taken advantage of by corrupt local officials in the guise of providing them more
opportunities to get out of the rut they are in.

Overall, however, poor localities are always perceived to be engaged in higher degrees of
corruption than are rich local governments.

Education

Poor economic levels lead to low levels of education. Low educational levels lead to
great opportunities for corruption since people are less informed or less aware of how the
government works, what rights they have under that government, or how they can stop
ongoing corrupt practices. It also makes it easier for corrupt government officials to conceal
their corrupt activities from a poorly educated constituency.

More often than not, because of this situation, corrupt elective officials are able to stay
continually in power as the people are not cognizant of their illegal activities. This usually
leads to the practices of nepotism and patronage.

More importantly, less educated leader, are less likely to find legitimate and better ways
to make the local situation well-structured, more productive, and greatly successful.

Political Culture of the Municipality

Expectations and practices, seen as acceptable or not acceptable form the political
culture of a community. Accountability, legitimacy, or ethical practices generally pervade
localities that are either undeveloped or underdeveloped. These makes local officials highly
susceptible to corruption because citizens may not know what is considered corrupt or those
concerned are not undaunted in their corruption because of low accountability. Many times,
corrupt practices are seen as the norm on how governments are supposed to function and,
therefore, become acceptable to the people.

Prolonged periods of political instability also leads to a corrupt government because the
citizens are simply not informed as how it should operate, consequently, are also unaware
what practices are corrupt and how to put an end to these activities.

Gender

Women are generally regarded as more trustworthy than men and are less likely to be
corrupt. Thus, having fewer women in the local government is an additional factor that may
encourage greater corruption.

WAYS TO STOP AND PREVENT CORRUPTION IN LOCAL GOVERNMENTS

 The best way is to discover the underlying factors that cause corruption in local
governments and eradicate them.
 Establish anti-corruption campaigns and guidelines within local governments.
 Establish and publicize the citizens about policies of transparency and accountability as
most important to the legitimacy of local officials.
 Make the citizens the local government’s partners in stopping corrupt practices and
establish local anti-corruption monitoring groups.
 Define what public employment is and that honest governments are primarily made up
of honest workers who give their best in the service of constituencies.
 Enforce existing laws that penalizes corruption.