Retooling our anti-corruption arsenals: exploring the potential use of CAQDAS in corruption investigation
| DOI | https://doi.org/10.1108/JMLC-03-2020-0021 |
| Published date | 30 November 2020 |
| Pages | 111-136 |
| Date | 30 November 2020 |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Hendi Yogi Prabowo |
Retooling our anti-corruption
arsenals: exploring the potential
use of CAQDAS in corruption
investigation
Hendi Yogi Prabowo
Department of Accounting, Faculty of Economics, Islamic University of Indonesia,
Sleman, Indonesia
Abstract
Purpose –This paper aims to explorethe potential of computer-assisted qualitativedata analysis software
(CAQDAS) to be used as a corruption investigation tool to help investigators in carrying out their
investigativeworks.
Design/methodology/approach –By reviewing the literature on qualitative research and fraud
investigation, this exploratory study identifies similarities between the two types of inquiries and thus
proposingthe use of CAQDAS as an innovationin the field of corruption investigation. To demonstrate how a
QDA applicationcan support corruptioninvestigators, NVivo is used as a case study from which various key
analyticaltools are discussed to highlight their potential in supportinga corruption investigation.
Findings –As a fundamental part of anti-corruption practice in a country, corruption investigation must be
planned and executed professionally and adequately. This paper highlights various stages in fraud investigation
to identify areas that can be improved with the use of a CAQDAS. Based on the discussion in this paper, the
author concludes that the capability of a CAQDAS to assist users in data reduction and data display has the
potential to increase the effectiveness and efficiencyin various stages of a corruption investigation.
Research limitations/implications –Based on a self-funded study, this paper onlyuses a simulation
case with a fictitious company to illustratehow a CAQDAS application can be used to support a corruption
investigationprocess. Future studies may benefit from using actual corruption cases in illustratinghow such
an applicationcan support the investigation process.
Practical implications –This paper contributes to the innovation in anti-corruption practice by
proposinga new framework and tool to develop corruption investigationcapacity.
Originality/value –This paper brings a new perspective into the field of anti-corruption to stimulate
innovationin the area of corruption investigation.
Keywords Fraud, Corruption, Investigation, Indonesia, CAQDAS, Innovation
Paper type Research paper
Introduction
Corruption is one of the biggest problems faced by multiple nations across the world. Not
only that, it undermines good governance and the rule of law; it also diminishes service
quality and efficiency within the economy (Graycar and Sidebottom, 2012). As it infiltrates
through many levels of society, corruptionmay create further problems such as community
destabilization and escalating violent conflicts (Ashari et al.,2018, p. 570). Governments
have devoted their efforts to minimize the risk of corruption primarily through anti-
corruption laws. Nonetheless, despite the existence of anti-corruption laws, there has been
ample evidence of such laws being ignored or even being circumnavigated, which further
exacerbates the corruptionproblem (Ashari et al.,2018, p. 570).
Potential use
of CAQDAS
111
Received10 March 2020
Revised19 March 2020
Accepted19 March 2020
Journalof Money Laundering
Control
Vol.24 No. 1, 2021
pp. 111-136
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2020-0021
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
As corruption becomes an increasingly important issue across jurisdictions, corruption
investigation is highlighted as a critical element in corruption eradication. Therefore, anti-
corruption agencies (ACAs) have been established by governments to carry out the
extraordinary task of corruption investigation among other things. Some ACAs have been
considered successful, whereas others are only seenas a waste of resources for their failure
in mitigating thethreats of corruption in their respective countries.
In Indonesia, three law enforcement agencies are tasked with combatingcorruption: The
Corruption EradicationCommission (KPK); the Indonesian National Police (POLRI); and the
Attorney General’sOffice (Global Legal Insights, 2019). This paper focuses on corruption
investigation on major corruption cases performed by the KPK. KPK was established in
2003 under a lex specialis (Law 30/2002) and is tasked with duties including preventing,
monitoring, investigating, and prosecuting corruption cases (Umam et al., 2018,p.2).To
achieve its vision of freeingIndonesia from corruption (Corruption EradicationCommission,
2019a), the KPK is equipped with special authorities such as wiretapping, requesting
financial information about suspects, issuing travel bans, freezing financial transactions,
requesting the assistance of other law enforcement agencies, to name a few (Panth, 2011).
Over the years, the KPK has been considered by many anti-corruption scholars as a
successful ACA. With only a limited amount of resources (e.g. 1,557 employees in 2018
serving a population of 260 million), the commission has successfully uncovered various
schemes of “mega”corruption involving high ranking public officials (Umam et al.,2018,
p. 2).
Corruption eradicationwill always be an uphill battle. More often than not, investigators
have to race against time in carrying out their investigative works in an adversarial
environment with limited resources. Hence, innovation needs to be continuously aligned
with corruption eradication activities, in particular, those of corruption investigation. This
exploratory research is an attempt to introduce innovation into the world of corruption
eradication in particular corruption investigation. Saunders et al. (2016, p. 171) argued that
exploratory research aims to discover what really happens as well as gain insights on a
particular topic. This researchaims to forge an “emphatic knowledge base”for studying an
unfamiliar area (Hanington and Martin, 2012, p. 84). According to Kothari (2004, p. 33),
exploratory research emphasizes primarily on the discovery of new ideas and insights by
using a flexible research design to accommodate various aspects of the studied
phenomenon. By reviewing the literature on computer-assisted qualitative research as well
as fraud investigation, this study identifies similarities between the two types of inquiries
and thus proposing the use of computer-assisted qualitative data analysis software
(CAQDAS) as an innovation to enhance the effectiveness and efficiency of corruption
investigation activities.
Corruption in Indonesia: an overview
The Association of Certified Fraud Examiners (ACFE) categorizes occupational fraud into
three broad categories: asset misappropriation, corruption, and financial statement fraud
(2018). In the 2018 Report to the Nations (Asia Pacific Edition), the ACFE revealed that
corruption is the most common occupational fraud scheme in the Asia-Pacific region
(Association of Certified Fraud Examiners, 2018, p. 5). Based on the 2019 Corruption
Perception Index report, Indonesia scored 40 and was ranked 85 out of 180 countries
(Transparency International,2020). Despite obtaining a higher score and a higher rank than
in the 2018 CPI report (scored 38, ranked 89) (Transparency International, 2018), compared
to many other countries in the report, Indonesiais still far from becoming a corruption-free
country.
JMLC
24,1
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