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Classification of Corruption: FRAUD and EMBEZZLEMENT

Classification of Corruption: FRAUD and EMBEZZLEMENT


  • Embezzlement occurs when public officials steal money or other government property, or when disloyal employees steal from their employers in the public and private sectors.
  • When embezzlement occurs in the public sector it affects the innocent citizens because public officials misappropriate resources meant for public services. Embezzlement is not limited to money, but includes all goods that were meant for the people.
  • Sometimes parliamentarians and parliamentary staff, among other public figures, will participate in embezzlement in subtle or accidental ways. When, for example, they forge receipts, or use government property or personnel for personal, unofficial use.
  • Embezzlement is a form of corruption and power abuse that can develop in more confined environments, secretly without the public’s knowledge, or opportunities for public sanctions.
  • Embezzlement presents a threat to corrupt countries, as it is sometimes one of the quickest ways to gain wealth. For example, some power holders use their political office to build their private business interest.
  • In some countries businesses and property are nationalized and given government officials or their families.
  • The trend may be further expanded when a government aims to expand its privatization efforts and sells former state enterprises and parastatals under cost to friends and family members of parliamentarians, ministers or presidents.                Classification of Corruption: FRAUD and EMBEZZLEMENT


  • Fraud occurs when a person cheats another through deceit. It is usually a financial crime in which someone manipulates or distorts information and facts.
  • For example, false advertising, identity theft, illegal trade networks, counterfeiting and racketeering, forgery, smuggling, confidence tricks and other actions of deceit are examples of fraud.
  • In the public domain, a public official who commits fraud manipulates the flow of information for his personal profit.                        Classification of Corruption: FRAUD and EMBEZZLEMENT
  • In cases of extreme fraud, government employees facilitate economic crimes by “official” sanction. Even when they are not actually involved in fraudulent activities, government officials who ignore the fraud are set to be passively participating in the fraud that is committed by others.
  • Extortion is another example of corrupt behaviour in which one person coerces another to pay through money, goods, or favours for an action.
  • In government, extortion occurs when government agencies do not provide services quickly, and as a result individuals will offer money to make the application or service be delivered more quickly.
  • As a result, those who pay receive preferential treatment, making the service not really public.