malversation

Malversation refers to the misappropriation or fraudulent conversion of funds or property entrusted to a person by virtue of their position or authority. The term is often used in legal and financial contexts to describe the unauthorized use of assets for personal gain, typically by an individual in a position of trust, such as an employee, manager, or public official. Unlike theft, which involves taking property without legal authority, malversation involves the misuse of property that was legally obtained but subsequently diverted from its intended purpose.

The act of malversation can occur in various settings, including corporate environments, government agencies, or financial institutions. For example, an accountant may embezzle company funds by transferring money to a personal account, or a public official might misuse public funds allocated for a specific project. Malversation is considered a form of financial misconduct and is often prosecuted as fraud or embezzlement, depending on the jurisdiction and the specific circumstances of the case.

Legal consequences for malversation vary by country and legal system but may include criminal charges, fines, restitution, or imprisonment. In some cases, civil lawsuits may also be filed to recover lost funds or assets. Organizations may implement internal controls, such as audits, segregation of duties, and transparency measures, to prevent malversation and protect against financial irregularities. Public awareness and ethical guidelines also play a role in deterring such misconduct by reinforcing the expectation of responsible stewardship.