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E-corruption – a new challenge Enabling government information and services to be accessed via the internet undoubtedly increases transparency, accountability, credibility and public participation in government processes. Above all, such initiatives enable people to access their basic right – the right to information. But e-government initiatives also pose a great danger by enhancing opportunities for e-corruption. e-corruption may be defined as an activity committed by a public authority or its agency to misuse the entrusted power for private gain using or taking advantage of the new electronic media. e-Corruption takes place in many ways and forms. Recent discoveries The need to know: eCorruption and unmanaged risk, Independent Commission Against Corruption, 2001, p. 27. include, manipulation of electronic ticketing system to steal the fares paid by ferry passengers; acceptance of bribes to manipulate computerised local council waste management records; electronic registration of stolen cars by accepting bribes; and, altering one’s own or friends’ billing records for a sum. However, in the absence of many more such examples, it becomes extremely difficult to assess the size of the problem because such crimes are often undiscovered or under-reported, mainly because the victims are often unaware of the offence. Despite the fact that the problem is long known, it is only now, bodies such as the Independent Commission Against Corruption (ICAC) of the Government of New South Wales, have begun to study the problem more closely. The ICAC studies reveal that e-corruption occurs mainly due to the involvement of insiders, quite often the employees of the public sector Phukan, S., `Ethical Use of Information Technology: The Impact of the Internet', in Simpson, C.R., (ed.) AICEC99 Conference Proceedings, Australian Institute of Computer Ethics (AICE), 14-16 July 1999, Swinburne University of Technology, Lilydale, p. 296.. Most commonly, an employee responsible for procurement might receive bribes or incentives from a supplier designed to encourage them to favour that supplier Hayton, J., Procurement fraud in e-business: dispute analysis and investigations, PriceWaterhouseCoopers, p.12.. Further, it is believed that the current climate for e-government initiatives sometimes can potentially cause e-corruption problems. The urgency for e-government with very little or no willpower on the part of governments to integrate services or change the culture within government institutions threatens the progress of e-government strategies. It also leaves room for a new kind of nexus between various corrupt elements within and outside government organisations. Results of a survey published in March 2000 by the FBI and the Computer Security Institute of the United States concluded that the trends in computer security were going "from bad to worse in terms of threats from the outside, while the threat from the inside doesn't go away”. This may be attributed to the lack of knowledge of IT and IT security-related issues among e-government managers. The IT contractors recruited to automate services often make the government departments vulnerable to their demands, even to the extent of gaining access rights to information material that can be leaked or sold out Future Influences on Public Sector Corruption: The strategic setting - a discussion paper, Office of Strategic Crime Assessments, 1996, p. 2.. E-corruption can flourish if technical issues, such as authentication, , content management of classified information, outsourcing of activities to unreliable parties and the use of premature technology are not thoroughly planned and addressed. There are few standards or guidelines that map out how technology can be put to use to achieve e-government goals, while reducing the e-corruption risks. Recent research conducted by groups such as the Commonwealth Research group into the Law Enforcement Implications of Electronic Commerce (RGEC), the Australian Institute of Criminology (AIC) and the Commonwealth Attorney General's Office of Strategic Crime Assessments (OSCA) throws more light on the emerging e-corruption scenarios. Experts find the need for further research in this field to minimise e-corruption. A tool kit that enables e-government practitioners to review their IT security situation together with user education for implementation is urgently required. In addition, there is an acute need for strengthening ethics, accountability and responsibility in the delivery of service, information management, data protection and encryption issues while conducting business transactions – including government business – on the Internet. Finally, there is a clear requirement for e-procurement impact studies that determine whether such initiatives in fact enhance transparency. Although various commercial consulting firms are currently engaged in benchmarking e-procurement models, the OECD initiative http://www.oecd.org/pdf/M00023000/M00023969.pdf to study the impact of e-government looks promising. Basheerhamad Shadrach, Transparency International FILENAME \p Z:\shaddy\eGov\E-corruption box 6.doc DATE \@ "dd.MM.yy" 04.07.1209.10.02 - 618 words PAGE 1 PAGE 2