Source : Webster's Revised Unabridged Dictionary (1913)

Malversation \Mal`ver*sa"tion\, n. [F., fr. malverser to be
   corrupt in office, fr. L. male ill + versari to move about,
   to occupy one's self, vertere to turn. See {Malice}, and
   {Verse}.]
   Evil conduct; fraudulent practices; misbehavior, corruption,
   or extortion in office.

Source : WordNet®

malversation
     n : misconduct in public office