A kickback is a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered. Generally speaking, the remuneration (money, goods, or services handed over) is negotiated ahead of time. The kickback varies from other kinds of bribes in that there is implied collusion between agents of the two parties, rather than one party extorting the bribe from the other.[1] The purpose of the kickback is usually to encourage the other party to cooperate in the scheme.[2]
The term "kickback" comes from colloquialEnglish language, and describes the way a recipient of illegal gain "kicks back" a portion of it to another person for that person's assistance in obtaining it.[3]
The most common form of kickback involves a vendor submitting a fraudulent or inflated invoice (often for goods or services which were not needed, of inferior quality, or both), with an employee of the victim company assisting in securing payment. For their assistance in securing payment, the individual receives some sort of payment (cash, goods, services) or favor (the hiring of a relative, employment, etc.).[4]
"Kickback brokers" are individuals who may not receive the kickback personally, but who help link the individual or company providing the goods or services with individuals capable of assisting with the illegal payments. For helping to link the two colluding parties, either or both parties may make a payment to this "broker".[5]
In government
Kickbacks are one of the most common forms of government corruption.[3] In some cases, the kickback takes the form of a "cut of the action," and can be so well known as to be common knowledge—and even become part of a nation's culture. For example, in Indonesia, President Suharto was publicly known as "Mr. Twenty-Five Percent" because he required that all major contracts throughout the nation provide him with 25 percent of the income before he would approve the contract. Also, in Pakistan, President Asif Ali Zardari was publicly known as "Mr. Ten Percent" for a similar reason; after coming into the government, he started taking 10% of all major contract investments before he would approve the contract.[1] However, kickbacks differ from other forms of corruption, such as diversion of assets, as in embezzlement, because of the collusion between two parties.[2]
Kickback schemes can be pervasive. For example, in the United States, companies providing medical services to Medicare patients were paying doctors to send patients to them, whether or not the patient needed the treatment, diagnosis, or test.[6] In 1987, the United States Congress passed the stringent Anti-Kickback Enforcement Act to prevent such schemes.[7]
In Italy, the political scene was realigned dramatically by the Tangentopoli scandals in the 1990s, which uncovered widespread use of kickbacks in the national and local governments.[8]
^ abWrage, Alexandra Addison. Bribery and Extortion: Undermining Business, Governments, and Security. Westport, Conn.: Praeger Security International, 2007. p. 14.
^Zibulewsky, Joseph (October 2001). "The Emergency Medical Treatment and Active Labor Act (EMTALA): what it is and what it means for physicians". Proceedings (Baylor University. Medical Center). 14 (4): 339–346. doi:10.1080/08998280.2001.11927785. ISSN 0899-8280. PMC1305897. PMID 16369643.
Albrecht, W. Steve; Albrecht, Conan C.; Albrecht, Chad O.; and Zimbelman, Mark F. Fraud Examination. Mason, Ohio: Cengage Learning, 2012.
Buchbinder, Sharon B. and Shanks, Nancy H. Introduction to Health Care Management. Boston: Jones & Bartlett, 2007.
Campos, Jose Edgardo. The Many Faces of Corruption: Tracking Vulnerabilities at the Sector Level. Washington, D.C.: World Bank, 2007.
Kranacher, Mary-Jo; Riley, Richard; and Wells, Joseph T. Forensic Accounting and Fraud Examination. Hoboken, N.J.: Wiley, 2010.
March 03, 2023
kickback, bribery, this, article, about, form, bribery, other, uses, kickback, disambiguation, kickback, form, negotiated, bribery, which, commission, paid, bribe, taker, exchange, services, rendered, generally, speaking, remuneration, money, goods, services, . This article is about the form of bribery For other uses see Kickback disambiguation A kickback is a form of negotiated bribery in which a commission is paid to the bribe taker in exchange for services rendered Generally speaking the remuneration money goods or services handed over is negotiated ahead of time The kickback varies from other kinds of bribes in that there is implied collusion between agents of the two parties rather than one party extorting the bribe from the other 1 The purpose of the kickback is usually to encourage the other party to cooperate in the scheme 2 The term kickback comes from colloquial English language and describes the way a recipient of illegal gain kicks back a portion of it to another person for that person s assistance in obtaining it 3 Contents 1 Types and methods 2 In government 3 See also 4 References 5 BibliographyTypes and methods EditThe most common form of kickback involves a vendor submitting a fraudulent or inflated invoice often for goods or services which were not needed of inferior quality or both with an employee of the victim company assisting in securing payment For their assistance in securing payment the individual receives some sort of payment cash goods services or favor the hiring of a relative employment etc 4 Kickback brokers are individuals who may not receive the kickback personally but who help link the individual or company providing the goods or services with individuals capable of assisting with the illegal payments For helping to link the two colluding parties either or both parties may make a payment to this broker 5 In government EditKickbacks are one of the most common forms of government corruption 3 In some cases the kickback takes the form of a cut of the action and can be so well known as to be common knowledge and even become part of a nation s culture For example in Indonesia President Suharto was publicly known as Mr Twenty Five Percent because he required that all major contracts throughout the nation provide him with 25 percent of the income before he would approve the contract Also in Pakistan President Asif Ali Zardari was publicly known as Mr Ten Percent for a similar reason after coming into the government he started taking 10 of all major contract investments before he would approve the contract 1 However kickbacks differ from other forms of corruption such as diversion of assets as in embezzlement because of the collusion between two parties 2 Kickback schemes can be pervasive For example in the United States companies providing medical services to Medicare patients were paying doctors to send patients to them whether or not the patient needed the treatment diagnosis or test 6 In 1987 the United States Congress passed the stringent Anti Kickback Enforcement Act to prevent such schemes 7 In Italy the political scene was realigned dramatically by the Tangentopoli scandals in the 1990s which uncovered widespread use of kickbacks in the national and local governments 8 See also EditAnnates Anti competitive practices Baksheesh Bid rigging Charbonneau Commission Conflict of interest Fraud Kickbacks TangentopoliReferences Edit a b Wrage Alexandra Addison Bribery and Extortion Undermining Business Governments and Security Westport Conn Praeger Security International 2007 p 14 a b Kranacher Riley and Wells p 387 a b Campos p 299 Albrecht Albrecht Albrecht and Zimbelman p 517 Campos p 299 300 Zibulewsky Joseph October 2001 The Emergency Medical Treatment and Active Labor Act EMTALA what it is and what it means for physicians Proceedings Baylor University Medical Center 14 4 339 346 doi 10 1080 08998280 2001 11927785 ISSN 0899 8280 PMC 1305897 PMID 16369643 Buchbinder and Shanks p 365 Kickback frontend Retrieved 2021 12 17 a href Template Cite web html title Template Cite web cite web a CS1 maint url status link Bibliography EditAlbrecht W Steve Albrecht Conan C Albrecht Chad O and Zimbelman Mark F Fraud Examination Mason Ohio Cengage Learning 2012 Buchbinder Sharon B and Shanks Nancy H Introduction to Health Care Management Boston Jones amp Bartlett 2007 Campos Jose Edgardo The Many Faces of Corruption Tracking Vulnerabilities at the Sector Level Washington D C World Bank 2007 Kranacher Mary Jo Riley Richard and Wells Joseph T Forensic Accounting and Fraud Examination Hoboken N J Wiley 2010 Retrieved from https en wikipedia org w index php title Kickback bribery amp oldid 1134443079, wikipedia, wiki, book, books, library,
