Abstract
This article focuses on the link between administrative reform and decentralized corruption in German municipalities. It argues on the basis of survey findings, that the decentralization process of public service delivery from core administration to public enterprises during the last years has not only resulted in a shift of administrative authority, personnel and financial resources to newly established public enterprises but also in a shift towards decentralized corruption. Findings show that the perceived quantity of decentralized corruption is as high as bureaucratic corruption. In the course of decentralizing public service delivery to new administrative bodies, municipalities have missed the opportunity to adapt their audit systems. Old corruption risks have been shifted to public enterprises and new opportunities for corruption have been created. The data presented are based on a survey conducted with local audit experts and analyze the motivation, opportunity, and possibility for decentralized corruption.
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