Differences between Fraud and Corruption

Mar 29, 2019

Industry News

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There are many similarities between Fraud and Corruption. However differences are noted and in order to identify these differences the definitions are essential:

  • Fraud:

Wrongful or criminal deception intended to result in financial or personal gain. A person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.

This may include:

  • Deliberate falsification, concealment, destruction;
  • Use of falsified documentation or intended for use for normal business purpose; and
  • Improper use of information or position for personal financial benefit.
  • Corruption:

Dishonest or fraudulent conduct by those in power, typically involving bribery;

The process by which a word or expression is changed from its original state to one regarded as erroneous or debased.

This can take many forms but includes:

  • Conflicts of interest;
  • Taking or offering bribes;
  • Dishonestly using influence;
  • Blackmail;
  • Fraud;
  • Theft;
  • Embezzlement;
  • Tax Evasion;
  • Forgery; and
  • Nepotism and Favouritism.

Thus meaning corruption tends to be a fraudulent act committed by officials in power.

The South African Government is currently fighting corruption in order to restore trust with the people of South Africa as well as global investors. Please follow the link below on the press release issued by President Ramaphosa regarding the proclamation of the new NDPP Investigating Directorate to strengthen the fight against corruption.

https://www.news24.com/SouthAfrica/News/ramaphosa-makes-good-on-ndpp-directorate-promise-da-calls-move-smoke-and-mirrors-20190320


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