That's corruption, not capitalism. And corruption is far worse in non-capitalist states, although the spoils are much smaller in magnitude. And I'm not opposed to regulation or in favor of pure laissez faire markets.

I would add an important point though. In China, 300 million people have been lifted out of poverty in 30 years, a modern miracle, simply by introducing well regulated capitalism to the economy. This despite the fact that billions are siphoned off through corruption and "crony capitalism." Many will look at this and rightly point out how unfair and unjust this is, however most Chinese would rather have a few, even many, rich corrupt official than the old state run distribution system, because now is overwhelmingly better for most Chinese than then. The overall effect is enormously positive, and nitpicking corruption that falls through the cracks is misguided. Corruption unjustly gives some more wealth than they deserve in every country - capitalism just means the pie is bigger.