We hear a lot about business fraud. However, there are checks and balances in business, by boards of directors and independent audits. The publicity and media extravaganzas, along with government finger-pointing and publicity, make up for smaller, relative numbers. Government fraud is taken for granted but is far more prevalent; politicians and bureaucrats take it as a given.
An example: There is a formula for how government grants are used. There always is a euphemistic allowance made for “waste.”
And there is always an understatement of projected cost. It’s a rare government project that ever meets its original cost estimates.
Then there is usually some figure allotted to account for missing funds. Or at least a few percentage points devoted for investigations of fraud.
That is because of the psychological nature of government jobs. You don’t have the same checks and balances of private industry, despite the public image the media provides.
Government projects are always ramped up. Very few are ever terminated. Sunshine laws are passed from time to time but appear ineffectual. Once on the books, laws and agencies they breed have a life of their own. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)
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