Measurement of damage from corruption in Brazil
| DOI | https://doi.org/10.1108/JFC-04-2020-0057 |
| Pages | 1239-1239 |
| Date | 10 June 2020 |
| Published date | 10 June 2020 |
| Author | Jonatas Dutra Sallaberry,Liz Spinello Quaesner,Mayla Cristina Costa,Leonardo Flach |
| Subject Matter | Financial risk/company failure,Financial crime |
Measurement of damage from
corruption in Brazil
Jonatas Dutra Sallaberry
International School of Doctoral Studies, Universidad de Murcia, Murcia, Spain
and Department of Accounting, Universidade Federal de Santa Catarina,
Florian
opolis, Brazil
Liz Spinello Quaesner and Mayla Cristina Costa
Department of Accounting, Universidade Federal do Paraná, Curitiba, Brazil, and
Leonardo Flach
Department of Accounting, Universidade Federal de Santa Catarina,
Florian
opolis, Brazil
Abstract
Purpose –This study aims to analyse and measurethe damage caused by acts of corruption in the largest
investigationin Brazil, known as the “Lava Jato”operation.
Design/methodology/approach –For the analysis of financial flows, documentary research was
carried into denunciation and judicial decisions. Based on the “Follow the Money”methodology, it was
possible to follow the inverse trail of money, from the indications of benefits to public agents, financial
operatorsand fake companies up to the deviation of refinery construction.
Findings –The analysis allowed theidentification of damages from acts of corruption that reached 17.8%
of the value of the oil refineries built, while the benefit of the corrupting agents was 13.7% of the damage
caused. The analysis shows severalother characteristics of the movements and the identification strategy of
financialcrimes.
Research limitations/implications –Research enabled the developmentof a strategy to identify and
measure the flow of corruptionand money laundering.
Practical implications –Based on the identified financialparameters, it will be possible to estimate the
damage causedby a corrupt act for a certain benefit.
Originality/value –The research identified financial parameters of damages and benefits from acts of
corruptionin the largest fraud that occurred in the country, which was replicated in modus operandiin several
works and countriesin Latin America.
Keywords Corruption, Money laundering, Follow the money, Accounting fraud, Bribe, Car wash
Paper type Research paper
Introduction
The Operation “Lava Jato”(Car Wash) and more recent investigations evidenced various
acts of corruption in the most diverse forms, social levels, professions, political ideologies
and business segments. Operation Car Wash represents the largest investigation of
corruption and moneylaundering in Brazilian history.
The authors would like to thank the reviewers and panelists at the 7th UFSC Congress on
Controllership and Finance, 2017, and 45th World Continuous Auditing & Reporting Symposium,
2019.
Damage from
corruption in
Brazil
1239
Journalof Financial Crime
Vol.27 No. 4, 2020
pp. 1239-1251
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-04-2020-0057
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