The cost of corruption and undue private benefit: two hidden faces of the same mirror

DOIhttps://doi.org/10.1108/JFC-03-2021-0064
Published date20 September 2021
Date20 September 2021
Pages653-664
Subject MatterAccounting & finance,Financial risk/company failure,Financial crime
AuthorVicente Humberto Monteverde
The cost of corruption and undue
private benef‌it: two hidden faces
of the same mirror
Vicente Humberto Monteverde
Universidad de Moron, Moron, Argentina
Abstract
Purpose The purposeof this study is to formulate the cost of corruption and undue privatebenef‌it.
Design/methodology/approach The design is based on cost formulas of the corruption already
formulated, and the design of these formulas allowsthe calculation for Argentina in 2021 of the cost of the
corruption.
Findings The corruption cost models for bribes and cost overruns for public works are the theoretical
basis for obtaining the undue private benef‌it. Based on the formulas developed to calculate the costs of
corruptionfor Argentina 2021.
Research limitations/implications There are no limitationsin the model.
Practical implications In addition to the calculation of the cost of corruption, the formulaof private
prof‌it undueby corruption is developed.
Social implications The social implications are certaintyabout the cost of corruption for Argentina in
2021.
Originality/value The present work is original and its value is given by the formulation and practical
demonstrationof the cost of corruption for Argentina in 2021 and the undue private benef‌it.
Keywords Bribes, Cost of corruption, Corruption, Surcharges, Undue benef‌it
Paper type Research paper
1. Introduction
When we study the causes and consequences of corruption in the economy, it is exciting to
see how the unknown of the cost of corruption appears as the question to be revealed, then
we see calculations as percentagesof GDP, both of bribes, overpricing of works and services
and estimates. Do they have a f‌irm foundation? It is diff‌icult to aff‌irm,because to know the
cost of corruption, I must have a record of the acts that occurred,quantify the investigations
carried out and trialswith statistics of their convictions.
From there arises the amazement, the parade of corrupt and ill-gottengoods transmitted
live television, for example, houses, cars, assets, bags with money, foreign currency, off
shore accounts hiddenabroad and tax havens is protective .
That is why I believe that the best anti-corruption policy is the following: punishment,
prevention and education[1].
This work aims to calculate the theoretical cost of corruption, for the National State, in
the case of bribes and public works surcharges for Argentina in 2021, with two practical
cases, this would be a face of the mirror.
JEL classif‌ication A13, D11, P16
The author does not have funds for its publication, thanks to Emerald Publishing Limited. All
remaining errors are exclusive to the author.
Corruption and
undue private
benef‌it
653
Journalof Financial Crime
Vol.29 No. 2, 2022
pp. 653-664
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2021-0064
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm

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