GRAFT AND CORRUPTION

Corruption - the action or business of promoting and selling products or services,

including market research and advertising.

Graft - the action or business of promoting and selling products or services, including
market research and advertising.

Difference of Graft and Corruption

The Philippines’ national anticorruption framework and strategy defines corruption as
the use of public office and the betrayal of public trust for private gain, and graft as the
acquisition of gain in dishonest or questionable manner. Essentially, corruption refers to
corruption practices in the government while graft refers to corruption in general,
including the private sector. However, the term corruption is commonly used to refer to
all forms of corrupt and corruptible acts and practices, both inside and outside of
government. Graft is the illegal gaining of funds, corruption is the improper use of funds.

Characteristics of Corruption
-corruption always involves more than one person
-on the whole, it involves secrecy
-entails mutual obligation and benefit
-corrupt practices are usually given some legal justification
-involves deception
-in any form it is betrayal of the public's trust
-it rests on a contradictory dual function

Causes of Corruption
-absence and weakness of leadership
-weakness of religious influence
-colonialism
-lack of education
-poverty
-absence of punitive measures
-structure of government

Types of Corruption
1. TAX EVASION - refusal to pay the corresponding taxes to the government.
2. GHOST PROJECTS AND PAYROLLS - non-existing projects and personnel are
financed by the government.
3. EVASION OF PUBLIC BIDDING IN THE AWARDING OF CONTRACTS
4. PASSING OF CONTRACTS - the practice of passing the work from one
contractor to another
5. NEOPOTISM AND FAVORATISM - the appointment of relatives and close
friends to the government.
 6. EXTORTION - demanding money, valuable items or services from ordinary
citizens.

Costs of Corruption
 Corruption cost 48B in UN Millennial Developmental Goals
 Tax Evasion cost 800M in Palestine
 Bribery cost 27M in India
 2T wasted on corruption every year

Countries Involved with Corruption

The least corrupt
 Denmark
 New Zealand
 Finland
 Sweden
 Switzerland
 Norway
 Singapore
 Netherlands
 Canada
 Germany

The most corrupt

 Nigeria
 Pakistan
 Kenya
 China
 Cameroon
 Egypt
 Columbia
 Uganda
 Philippines
 Indonesia

Anti-Corruption Bodies
1. The Office of Ombudsman
2. Commission on Audit