Occurs when a person in a high position which formulates government policy or is able to influence government decision- making, seeks for a big  payment or reward, for exercising the extensive arbitrary powers vested in him or her. Such money is used to build expensive houses, buy expensive cars, setting up farms etc.

This type of corruption may not be known to ordinary people but is more severe and dangerous to the country as huge sums of money are lost to the corrupt officials who continuously swing in money and luxury while the poor become poorer and more constrained.

More anti- corruption effort should be directed towards this type of corruption, but it is hard to fight as it is always behind closed doors and is complex.

Examples of transactions in which grand corruption plays a significant role include:

• the purchase of military supplies and equipment, telecommunication, capital goods

   required for major industrial and agro- industrial projects, as well as major

   engineering contracts, such as the construction of dams, highways, hospitals etc.,

   where the executor stands to have a kick back.

• Subverting of government funds intended for e.g. for development or poverty

   alleviation, as well as diverting government funds to less important projects, where the

   money can be easily swindled.

• Tax exemptions on services and goods produced by rich and politically influential 

   people and allocating of huge sums of money as allowances to members of the

   government