Bribery and corruption cases jumped 13 per cent globally since 2011 with engineering and construction sector topping the list, followed by government business, a PwC report said today.
According to the multinational accounting firm, the menace of bribery and corruption will continue to rule the economic crimes chart this year as well.
“Every region reported a significant number of incidences of bribery and corruption. Twenty-seven per cent of all respondents who reported economic crime experienced corruption during the survey period, making it the third-highest crime specified and a relative increase of 13 per cent from 24 per cent reported in 2011,” PwC said in its 2014 Global Economic Crime Survey.
This was third only to asset misappropriation (69 per cent) and procurement fraud (29 per cent), it added. Read More
These business houses secured huge loans from the banks after the 2008 financial crisis, but either defaulted or escaped by restructuring the loans
Big business houses that secured huge loans from public sector banks post-2008 financial crisis, but defaulted on repayments or charted an escape route through multiple restructuring of bad loans, have now come under the Central Bureau of Investigation’s scanner for suspected wilful misappropriation of public money, running into thousands of crores.
“An inquiry has been initiated into the public sector bank loan non-performing assets (NPAs) to understand the magnitude of the problem, which basically concerns the Finance Ministry. Big business houses have in the past procured loans worth thousands of crores and it is suspected that in several cases they have either defaulted or got the loans restructured, resulting in further delay in loan recovery by the financial institutions. Whether it amounted to wilful misappropriation leading to embezzlement of public money has to be enquired into,” a senior CBI official told
The official said the agency’s banking division had already started an internal inquiry. “It is only after we get to know the magnitude of the issue that we can zero in on specific business houses to ascertain their role in bank debt non-recovery. Sadly, we have noticed that the bleeding banks, due to various reasons, do not usually come forward to lodge complaints seeking a probe. This exercise will throw light on the irregularities, if any, in the process of loan grant and non-recovery/restructuring,” he added. Read More