Political Corruption

It covers both how power is won and how it is used. On the winning side are vote buying, secret funding of parties or candidates, and donations given in return for policy or contracts. On the using side are appointments made for loyalty rather than merit, laws shaped to suit donors, and public money directed to supporters. Because the actors write and enforce the rules, the problem is hard to police. Controls tend to be disclosure of donors and spending, limits on contributions, independent election bodies, rules on lobbying and conflicts of interest, and free media. Financial institutions relate to it through politically exposed persons, party accounts and donation flows, and companies through political contributions and lobbying rules. It overlaps with grand corruption, but is defined by the political setting and not by the sums involved. Electoral watchdogs track it through donor filings and spending returns, comparing who gave with who later won contracts.

To stay under disclosure limits, a property developer splits a large donation to a ruling party across three small companies. Within weeks the party's minister fast-tracks the developer's planning application. Journalists connect the donations and the approval. The electoral authority opens an inquiry, and the developer's bank reviews its relationship and the source of the funds.