eLesson 3
Corruption means the abuse of power for private gain.
A health officer demands money for performing services which are supposed to be free
A supplier bribes a contractor in return for receiving a contract
A politician changes the law as a favour to his financial supporters
eLesson on corruption
5 mins left
Corruption adds significant costs to the price of doing business
Corruption steals resources that could be used to build the capacity of countries and harms their abilities to serve citizens
Corruption prevents a “fair playing field” in competitions to provide goods and services
Corruption thrives where there is a lack of transparency, which can damage a nation’s social and economic fabric
eLesson on corruption
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$1 trillion in bribes paid each year
Total cost of corruption worldwide equals 5% of global GDP ($2.6 trillion)
Corruption adds up to 10% to the total cost of doing business globally, and up to 25% to the cost of procurement contracts in developing countries
eLesson on corruption
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Corruption has the following red flags:
A significant improvement in lifestyle in the absence of changes in financial circumstances
Owning property or high-value items that do not seem to match the salary of the person and without other explanation (such as inheritance or family contribution)
A procurement official exerts pressure or otherwise tries to influence a contractor to use a certain sub-contractor
Procurement officials fail to complete conflict of interest forms
Procurement officials who act above or below their normal duties during the course of a contract award
Facilitation payments: a government official is given money to perform his or her duties
Gifts and gratuities: accepting excessive presents from suppliers for example paid vacations, luxury goods, expensive liquor etc.
eLesson on corruption
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Real case studies of corruption from our archives
01.12.2015
The director of a national malaria center received gifts from a bed net manufacturer in exchange for awarding contracts.
eLesson on corruption
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Is this corruption? |
YES |
NO |
---|---|---|
A supplier sends a procurement officer an expensive gift. The procurement officer then awards a contract to the supplier. | ||
Programmatic data is falsified, to inflate the number of patients on treatment. | ||
A manager threatens to fire a secretary unless she agrees to sexual relations |