When it comes to corruption, many people think this is an illegal act that only occurs in the state sector. However, corruption can occur in private enterprises and the non-state sector. Corruption is a cause of impediment to development and a challenge for enterprises, but after that, is a great impact on the development of the economic – social of the country. In the article below, TNTP will examine how the crime of corruption in businesses and the non-state sector is understood.
1. The notion of corruption in private enterprises and the non-state sector (in the private sector)
Organizations in the non-state sector can be understood as social organizations, non-public non-business units, companies, and enterprises invested, managed, and operated by private individuals. Hereinafter referred to as Private Sector Organizations/Enterprises.
Corruption is acts performed in the non-state sector (private sector) by people whose positions and powers in organizations/enterprises in the private sector, including (i) Embezzlement of funds or property; (ii) Accepting bribes; (iii) Giving bribes or brokering bribes to settle the affairs of their enterprises or organizations for self-seeking purposes.
The characteristic of corruption in organizations/enterprises in the private sector is that people whose positions and powers in enterprises, take advantage of their positions, powers, and assigned tasks to take personal interests, cause damage and threaten the rights and interests of their enterprises and organizations.
2. How is corruption in private sector organizations/enterprises usually performed?
Corruption in the private sector can exist in many fields and is performed by different acts, but usually concentrates mainly in the following fields:
- Economic – financial management: Those who hold positions and powers in private enterprises such as Directors, Accountants, Storekeepers, Treasurers, etc. can all be corrupt by cheating in declaring costs of consumables and purchasing input material; making goods declaration documents with higher prices when buying raw materials to “eat” the price difference; claim commissions; accept bribes to settle business affairs;…
- Investment: This is a field where corruption in the private sector is common, causing serious consequences for businesses because corruption can occur at any stage from starting project formulation, and design,… until acceptance of works and settlement. Corruption can be the substitution of expensive and good quality construction materials with cheaper and inferior quality materials to build buildings, measurement fraud, “eating less” of the construction stage, and not following the correct construction process,…
- Education: Not only in public educational institutions but also in private educational institutions, there is a pressing problem that education is gradually being commercialized. The school sets unreasonable fees and forces parents to pay for their children, teachers receive money and gifts from students to increase scores,…
Corrupt acts in the private sector cause serious consequences not only for the business activities of organizations and private enterprises in particular but also for the economic stability of society in general. Thus, the Government has established regulations on criminal prosecution for corrupt acts in the private sector to strictly deter and prevent this corrupt practice from continuing.
3. Are corrupt acts in the private sector subject to criminal prosecution?
Previously, in the 1999 Criminal Code, there were only provisions on corruption crimes within the state by cadres, civil servants, and public employees of state-owned organizations and enterprises. However, corrupt acts can be performed by any individual holding a position of authority in a public or private organization or enterprise. Therefore, the criminal law has been amended to expand the scope of criminal prosecution for corrupt acts carried out in the private sector.
The 2015 Criminal Code has limited the scope of corruption crimes to 02 crimes as Crime of property embezzlement; and the Crime of accepting property bribes. The common point of these two crimes is that the acts of committing these crimes are performed by individuals with positions and rights and they take advantage of their positions and powers to appropriate assets of organizations/enterprises, harass, and use cunning tricks to force other people or organizations to bribe them.
Thus, the issue of corruption in organizations/enterprises in the private sector needs to be strictly prevented, controlled, and complied with the law. The Government needs to continuously update, amend and supplement criminal law provisions to contribute to perfecting the legal framework for corrupt crimes to minimize the occurrence of corrupt acts like today in Vietnam.
Above is an article about “Crime of corruption in enterprises and the non-state sector” sent by TNTP to readers. Hope this article will help you.
You may need The employee appropriates company’s money – Is it a crime?
TNTP and Associates International Law Firm
Attorney: Nguyen Thanh Ha
Email: ha.nguyen@tntplaw.com
