FIGHTING CORRUPTIONFIGHTING CORRUPTION

Afternoon, Tuesday 23 NovemberAfternoon, Tuesday 23 November

Corruption: consequences

Makes projects more expensive or lowers quality

Favours bad projects over good ones Reduces availability of domestic investment

funds and their multipliers effects Transfers wealth from poor to rich Diverts consumption from essential local to

luxury imported products

Corruption: forms of corruption

Main forms of corruption in construction Bribery Extortion Fraud Rigged bidding Money-laundering Ilegitimate political pressure

Corruption: how it occurs (1)

Selection of roads is influenced by bribery or political pressure

Planning permission obtained through bribery

Inappropriate design and construction methods approved

Shortlist selection (contractor/ consultant) manipulated

Contractors collude during bidding

Corruption: how it occurs (2)

Tender process shortcircuited by bribery

Poor quality work or sub-standard materials approved

Inflated contract claims approved during execution

Legitimate contractor claims refused unless bribed

Corruption: reasons: international level

Lack of cooperation among governments

Financing agencies inadequately committed to reducing it

Poor coordination between donors and professional associations

Faulty procedures for identifying and sanctioning firms

Corruption: causes (national level) Culture of corruption embedded or

effective policies lacking Employees too badly paid or easily

coerced to stay quiet Corrupt contractors or consultants rarely

prosecuted Information on corruption not diffused Lack of national road data to evaluate

project choices or costing

Corruption: causes (project level)

Lack of transparency about who project stakeholders are

Employees too vulnerable to risk opposing or whistle-blowing

Road project complexity provides opportunities for corruption and makes detection difficult

Lack of procedures to monitor and detect corruption

Corruption: references

Corruption Types of coruption Forms of corruption in roadworks Reasons for corruption Preventing corruption General reference