corruption unedited

8/8/2019 Corruption Unedited

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Prepared By:

Lakshay Jain(120)

Abhinav jaju(124)Aashutosh Jakhodia(125)

Ankit Jakhodia(126)Vikrma salampuria(146)

Jaydeep Shah(153)Tarun Varshney(156)


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Corruption occurs when organizations or

individuals profit improperly through their

position in an activity Corruption can be found in all countries but is

particularly widespread in states where the legal

system, mass media and the public

administration are weak and undeveloped


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BRIBERY

NEPOTISM CLIENTELISM

EMBEZZLEMENT

FRAUD EXTORTION


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Three levels of corruption are usually referred to:

Petty corruption (bureaucratic corruption)

Grand corruption (political corruption)

state capture (corruption which affects the

entire state apparatus)


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Corruption is also an enormous contributor to

poverty in a nation or community.

Distorts the way the government uses its money.


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Political Patronage

Administrative Labyrinth

Lack of Punishment


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Economic Development

(i) higher (and more costly) public investment;(ii) lower government revenues;

(iii) lower expenditures on15 operations and maintenance; and

(iv) ensuing lower quality of public infrastructure.

Social Welfare

Political System


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Political Commitment

Administrative Accountability

Procedural Simplification

Civil Society Participation


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ZERO RUPEE NOTE


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CaseStudiesOnCorruption


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Canal Irrigation in South India Two main seasons-rainy and dry.

Water flows through canal to the farmers.

EE,AE and Supervisors which are actuallyresponsible for delivery(O&M)


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How to make money as an

irrigation officer?Maintenance contracts

1) Over-invoicing: EE gets 2.5% of the value of contract, AE and

supervisors get 25% of share.2) On the site: contractor puts less cement than he should. An

additional 5% to the AE (at least)

3) How does the EE overcome the competitive bidding process?

a)They choose a contractor in advance and write a estimate forhim

b)Other contracts have to provide higher bids

c)EE control the contractors through loans, and also because

he is the one who pays the bills.


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Budget is Rs.4,000,000, out of which 60%

(2,400,000)is for works.

1)EE-He gets 2.5% of this 2,400,000 (60,000) plus5% of the total budget(200,000), for a total of Rs.

260,000. Annual salary: Rs. 28,500

2)AE: He gets 25%*2.5%*2,40,000=15,000 , plus Rs15,000 from savings on the grounds, plus 50,000from the farmers: a total of Rs 80,000. HisAnnual salary: Rs 23,000.


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How to fight this corruption?

Existing methods are not successful.

Selling of transfers.

More inspections by the auditing department.

More control by the people.

Establish a real market for water.


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SATYAMTHE HIDDEN TRUTH


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V.CHANDRASEKARAN

(Pentamedia Group)

DINESH DALMIA

(DSQ Softwares)

RAMALINGA

RAJU

(Satyam Computers)


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Raju Ramalinga Raju is the biggest fraudster. In

the Indian software Industry. But he is not thefirst.

Dinesh Dalmia, Vice-Chairman, DSQ

software,has been in jail for Two years.

Pentamedia company promoter

V.Chandrasekaran was found to be in cahoots

with tainted broker KETAN PAREKH in rigging

up share prices.


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THETRUTHSERUMTRAILS

Sat yam's Rs 7,000-crore duplicity.

Scale of monies and skulduggery involved and theworrying implication for Indias IT sector.

The Satyam saga puts the entire corporate food

chain into question from directors and auditors toanalysts and the media.

Is The Satyam scandal just about a promoter

manipulating the financial statements of hiscompany to show a superior performance?


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DETAILS OFTHE FRAUD

The founder The founder andC

hairman of SatyamComputers Services, the Indian outsourcing company,confessed to fraudulently inflating profits, overstatingassets and suppressing liabilities over several years.

Bank balances, interest income and debtors wereoverstated to the extent of Rs 50.4bn, Rs 3.76bn and Rs4.9bn respectively. Liabilities were understated by Rs12.3bn.

The adjusted book value works out to Rs 18.4 per shareagainst a reported book value of Rs 124.3 per share andthe

pre-fraud revelation stock market price of Rs 178.953

per share.


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Impact on Indias IT (outsourcing)

industry The Satyam scandal will undoubtedly mar Indias

reputation as a reliable provider of IT services to some

extent.

It is highly likely that other Indian outsourcing companies

will be subject to greater degree of scurtiny by regulators,

investors and customers.

Impact on stock market

1)News of what is possibly the countrys biggest corporate

fraud, sent the indices tumbling..

2)Companies perceived to have poor corporate

governance standards were most affected


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The Man Who forced Rajus Hand

JUST WHY DIDCHAIRMAN RAMALINGA

RAJU TAKE THE outrageous decision of Emptying SatyamComputer ServicescoffersInto his familys pockets??

Simon Joyce, the CEO of london-based mobile payments technology firm

unpaid, May be that compelling reason.

Upaid and satyam are battling each other on three legal fronts. Two suits, in which Satyam faces accusations of Fraud, breach of contract

And forgery, have been in texas state and federal courts since 2007.

Upaid is expected to file a damages report that will enumerate the exact

Numbers in Feb 2009, even as satyam is all set to go to trial in june next year. The outcome of the case may well establish some logic behind Rajus bizzare


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Maytas Infrastructure Their attitude was: if I make $10, I will put $7 in

the business and $3 in my pocket.

Raju and the board mismanaged the $1.6 billion

investment decision process, even though it was

rolled back.

Even if infrastructure was to be the next hot,growth area for SATYAM, how did it arrive at

Maytas Infrastructure as the Investment vehicle


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Corruption hits as hard as terror,

as the Satyam Scam shows If Mumbai 26/11 threatened the physical wellbeing of Indian citizens,

the Satyam and scam threaten the economics well-being of Indians.

look closely and you will find the same trail of corruption behindboth, with just one difference.

In Transparency Internationals global ranking of corruption last year,India ranked 85th.

In India, the combined wealth of the Ambani brothers for example,

had crossed the hundred-billion-dollar mark. How come no financial journalist here investigates the source of such

wealth?


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THANKYOU

corruption unedited

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