Page 45 - Carbon Frauds and Corruption

Corruption of Bribery

Chapter 6 : Corruption in the “Carbon World”

Figure 6. 6: Examples of the Relationship Between Fraud and Corruption

Figure 6.6 indicates that corruption enters the picture when perverted decisions either enable
fraud, conceal or condone it. The perverted decisions may be internal in the defrauded or
defrauding organisation or, more often, involve third parties, such as inspectors and government
officials.

For example a regulated company may falsify its GHG returns (which is fraud). If they are approved by inspectors
or regulators in return for a personal advantage, the offence then involves corruption.

PRINCIPLE
Windfall profits or exceptional losses usually involve corruption. There are a lot of these in the
“Carbon World”

The advantage provided to the corrupt decision maker may be subtle (such as advancing a
political ambition or “noble cause”), financial in any of the ways discussed in Chapter 4 or by
participation in the benefits from mitigation or abatement schemes (see pages xx). Thus the
decision centric approach to risk assessment suggested in Chapter 7 is applicable in the “Carbon
World”

7 THE CULTURE OF THE CARBON WORLD
7.1 Overarching Factors
The “Carbon World” is distinguished by systemic inefficiency, waste, carelessness, fraud and
corruption all justified by the “noble cause” and waiting to be exploited by official, voluntary,
parasitic and criminal participants.

The culture involves, among other things:

 Complexity driven by a passionate of not messianic zeal in which ends justify the means:
this can be regarded as a perverted “tone from the top”

C:\Cobasco\NEW BOOK ON BRIBERY AND CARBON\For Cobasco Web Site Remove Chapters\Chapter 6 Corruption in 27
the Carbon World for Gower.docx | THE CULTURE OF THE CARBON WORLD