Fragments and bribes

Bribery and kickbacks are the most serious business crimes and give rise to other fraud and abuse, such as bid rigging, fraud, higher cost and lower quality, as parties seek to recover the cost of bribes and exploit the corrupt relationship.

corrupt payments

The bribe need not be in money or cash, and often it is not. Any benefit given or received with the intent to corruptly influence the recipient may be a bribe. It can be any “thing of value” to influence an official act. The “things of value” that have been given and received as fragments include:

Experience free gifts, free travel and luxury entertainment.
“Loans” repaid or not.
Use of credit cards.
Sexual favors (hiring prostitutes, etc.)
Overpaying for purchases, for example paying Rs 20,00,000 for a car worth Rs 10,00,000.
Money
Fees and commissions, even if the recipient allegedly provided services to the payer.
Hidden interests in business transactions.

The payments often follow the general sequence described above, with the amount and form of the payments becoming more significant and incriminating as the scheme progresses.

corrupt influence

Corrupt influence in the contracting and procurement process is often reflected in, among other things:

Qualify an unqualified or unproven company to bid or be a supplier.
Inadequate or non-competitive contract awards
Paying too much for goods or services
Buying too much of an item or buying inappropriate items
Continued acceptance of low-quality or non-conforming goods or services

As corruption continues, the abuses often escalate into fraud, such as fictitious billing, with parties conspiring to spy on profits. Ultimately, the excesses of the scheme lead to detection, as mounting evidence of favorable treatment and fraud, and the conspicuous expenditures of the conspiracy draw attention to their behavior.