 Welcome back to corporate governance and we are moving forward now with our series of sessions related to corruption and its different types. And today we are going to talk about extortion, embezzlement, fraud and some other dimensions of corruption. Ladies and gentlemen, when we talk about extortion, then it occurs where one person makes threats against another person of adverse consequences fulfillment of his or her demands. In this case, a person making the payment may have the defense because of the threat of the physical harm or death. So what we see is, in bribery, the giver and taker both mutually agree to give an amount and the receiver tends to take the amount and it is a mutually agreed transaction for each other's benefit. Well in extortion, what happens is that the receiver or the recipient of the bribe is coercing or is trying to damage the other person and through sheer force is extricating that money from the giver of that particular bribe. So what happens is that in extortion, the giver of the bribe is not responsible because he or she has been pushed or compelled to such a situation that there is no way out but to do it. And a simple example could be that if I look at bribery, then if I am doing a contract and I have a particular payment which has to be made to me, then bribery would be that I would give the amount and the taker would be taking the amount and I would be receiving my contractual check. However an extortion would be that I have completed something and I don't want to give a bribe but the other person who is the receiver of the bribe, he or she tends to put barriers for the payment of my bill and many weeks or months are passing by and naturally it is affecting and adversely affecting all of my business and therefore I would be left with no other option but to give a bribe to the other person because I know that I will not be able to receive my payment so that is extortion. The concept of extortion and facilitation payments can overlap and the terms are sometimes used to describe the same Auckland. So some people tend to call it facilitation payment but I would say that facilitation payment basically is a bribe but extortion is when that I do not have any other option and I am compelled because the other person's behavior is so stubborn, is so obstinate and is so pattering that I have no other option but to make that payment to get whatever is my legal view. Fraud on the other hand can be referred to as deception, a fraud usually involves a person's deceiving another person in order to gain some financial or other advantage. It could be for example exaggerating a person's experience on a CV or providing false information on company statements or maybe coming up with a false degree or a false bank statement or showing something and then delivering something else. So all of these are different type of fraud which take place in all the different sectors, social, private and also the public sector. We see that in fraud persons may be liable for the offence of fraud where they deliberately undertake the fraudulent action with full knowledge of the circumstances, reclinus can also sometimes hold persons liable. So again what we see is that in fraud the person who is doing the fraud is fully aware of everything but is deceiving the other person and keeping the other person in the dark and therefore is not fulfilling his or her own obligation that he or she has committed to the other person and therefore there is a fraud and in that fraud naturally the person who is committing a fraud would have some or excessive monetary advantage in all of that. There are also cartels nowadays we talk about cartels persons may be liable for the offence of fraud where they deliberately undertake the fraudulent action with full knowledge of the circumstances. Cartels in the projects may include bidding cartels, loser fee cartels, price fixing and cover pricing. So again cartelization basically is when people get together and they tend to do a particular activity nowadays we talk about bidding cartels. So that would be something like this that if there is a bidding then all the pre-approved bidders they get together and one person is given the opportunity to exceed in the bill and the others would basically file a higher bid than the selected person and therefore they would cartelize the whole bidding process. Again in losers fee what can happen is that if one person is taking the contract then or winning a contract then he or she would be giving a certain amount to all of the other people who have not won the comment and then it could be price fixing that everyone gets together and in this cartelization they fix a minimum price. So no one else can buy below than that and there is something very common nowadays because it is done in so many sectors of the economy right now and then cover pricing again could be that the cover price would be very high and then based upon that there would be a huge profit because there is a cartel which has gotten together and therefore no one can compete and when there is no competition then that basically tends to create exploitation and manipulation within that product or that service or that particular industry. We can also talk about abuse of power in corruption it occurs where a person in public office deliberately or recklessly acts in a way that is contrary to his or her duty and as a breach of his or her position of public trust could be including secretly owning a contractor or supplier. So again what could happen is that I could have a proxy contractor or proxy supplier and I could be working through a relative of mine and they would be basically working on my behalf and I would be exploiting the situation and that would be abuse of power or abuse of power would also be nepotism and favoritism or appointing someone on non merit and that again is abuse of power. Favoring friends or relatives for appointments employment or contract victimizer or intimidating staff so that they make decisions which support the officials view. So this is done a lot we can say even in Pakistan especially in the official circles where people have to do things which they do not want to do because they know that it is immoral and because of that immorality they do not want to do it but they pressurize you do it by their boss and therefore there is victimization and intimidating and if they do not do it then they are made an example. So again this abuse of power has many implications and many connotations and many interpretations but it can be extremely lethal because naturally someone's benefit would be the disbenefit of so many other people and therefore it must be curbed and curtailed the maximum. We also talk about embezzlement. Embezzlement is the term used to describe the wrongful appropriation of funds which you have due to safeguard for example public official who diverts public funds to his private bank. Well it happened many years ago in the old age employees benefit institution when one of its chairmen basically just shifted more than a billion rupees into his private account outside the country and therefore there was gross embezzlement and it is a type of that which normally involves an element of fraud but should be distinguished from the type of that. So again these are different ways of doing it and it could be embezzlement it could be again sometimes people are just abusing the authority and taking away public property so that is also embezzlement. Money laundering which is something very important especially nowadays globally we talk about FATF which is the financial action task force you've heard about it and that across the world is trying to curtail money laundering because that is the very genesis of corruption and also of abuse of drugs and things like that and therefore this money laundering process is a very very important dimension of corruption it occurs where a person moves cash obtained by criminal activity through a financial system for an example an organization submits a fraudulent claim with project owner for work which the organization do not even carry and then that amount is shifted abroad through some particular transaction and we see the infamous Panama leaks the Omni group case and many more and like I mentioned to you again a lot of drug money is shifted through money laundering a lot of black money is shifted through money laundering across the world and the FATF is trying to curtail all of that through anti-money laundering projects and programs but definitely is very difficult because in one hand technology makes it more visible but on the other technology also tends to hide it and now we see that money laundering is being done through cryptocurrency and so daunting and so negative that through cryptocurrency there is hardly any accountability and now most black money movers and money launders and corrupt people are using cryptocurrency and that's why we see the price of cryptocurrency going up it's all a fake rise which is based upon money laundering and again the criminal activities behind all of that and that is extremely painful and extremely illegal so again what we see ladies and gentlemen is that the different types of corruption different ways of doing corruption there are different circumstances in which corruption is happening and it is very important that the institutions and the different stakeholders they tend to curb corruption because it creates unfair competition it creates the banishment of rule of law and most importantly it tends to suffocate people therefore all corruption and all corrupt practices must be stopped at any cost on a institutional national and global level. Thank you so much.