Corruption to gulp $500 Billion in stimulus packages
By siliconindia   |   Tuesday, 23 June 2009, 15:45 IST   |    21 Comments
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Corruption to gulp $500 Billion in stimulus packages
Bangalore: Corruption and fraudulent activities may wipe out $500 billion from the stimulus package of $5 trillion provided worldwide, says global risk consultancy Kroll's latest edition of Global Fraud Report. According to the report, government stimulus funding worldwide aggregating $5 trillion has increased the possibilities of fraud and corruption around the world. Even though governments will make best efforts to bring the corruption down, the stimulus funding would "still provide a staggering pot of $500 billion in corrupt gains," said the report. The report also stated that it has put into perspective the compounded risk brought by the financial crisis, referring to the data collected from Transparency International, the global coalition against corruption. "According to the coalition, corruption can raise procurement contract costs by at least 10 per cent in a stable economy, an equivalent of $500 billion in corrupt gains," the Kroll report stated. In emergency situations, these costs may rise up to 30 percent of the overall cost of the contract, the report added.

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