Today you don't need banks to make money as politician.
Modern scheme in India:
1. Get citizens excited about new infra projects using tons of advertisements, and propoganda YouTube channels
2. Open a tender for the project
3. Pass on the bids to your favourable "company"
4. Now this favourable company puts in the winning bid and wins
5. Favourable company sends money to the political party through electoral bond
6. favourable company which is now a contractor on infra projects is forced to accept subcontractors who are usually acting as fronts and belong to family members of the politicians. These subcontracting firms either outsource the real work or they get into brand/asset building with public money.
This scheme works really well as they are skeaming off 20% of the project budget through various contractor companies and general public has no way to figure out anything.
This percentage scheme is there forever. Even L&T IDPL has to pay kickbacks; here, L&T pays to Chief ministers, etc.
However, if one wants to pull off 2000 crores ($300M USD) scam, it is done through banks. Here are two recent examples from the state of Andhra Pradesh:
1. Rayapati Sambasiva Rao, Ex MP 8000 Cr (1B USD)
2. Sujana Chowdary, MP, 5700 Cr (750M USD)
Modern scheme in India:
1. Get citizens excited about new infra projects using tons of advertisements, and propoganda YouTube channels
2. Open a tender for the project
3. Pass on the bids to your favourable "company"
4. Now this favourable company puts in the winning bid and wins
5. Favourable company sends money to the political party through electoral bond
6. favourable company which is now a contractor on infra projects is forced to accept subcontractors who are usually acting as fronts and belong to family members of the politicians. These subcontracting firms either outsource the real work or they get into brand/asset building with public money.
This scheme works really well as they are skeaming off 20% of the project budget through various contractor companies and general public has no way to figure out anything.