Date of this Version
Cornhusker Economics, October 14, 2020
Although the literature is limited, there is evi-dence that corruption in cooperatives and inves-tor-owned firms (IOF) is widespread in develop-ing and transition economies where corruption generally is common. Cooperative corruption is also found closer to home. Two recent examples from the United States include the Ashby Farm-ers’ Cooperative Elevator in Minnesota where the general manager stole from the cooperative and the Tri-County Electric Cooperative in South Carolina where board members enriched them-selves with perks and benefits. In Canada, the PACE Credit Union was placed under the regula-tor’s control in 2018 after two senior executives were discovered to have received secret loans and payments from the credit union.