Corruption types and how to control it?

2. Corruption Control in
Civil Engineering
Presented By:
Muzammal Ahmad
(FA15-BCV-080)

3. Corruption:
Corruption is a form of dishonest or unethical conduct by a person entrusted with a
position of authority, often to acquire personal benefit.
Scales of Corruption:
Corruption can occur on different scales.
1- Petty Corruption.
2- Grand Corruption.
3- Systemic Corruption.

5. 1- Petty Corruption:
Petty corruption refers to everyday abuse of entrusted power by low- and mid-level
public officials in their interactions with ordinary citizens, who often are trying to
access basic goods or services in places like hospitals, schools, police departments and
other agencies.

6. 2- Grand Corruption:
Grand corruption is the abuse of high-level power that benefits the few at the expense
of the many, and causes serious and widespread harm to individuals and society. It
often goes unpunished. Domestic authorities are often unable or unwilling to bring the
grand corrupt to justice.

7. Systemic Corruption:
 Systemic corruption is not a special category of corrupt practice, but rather a
situation in which the major institutions and processes of the state are routinely
dominated and used by corrupt individuals and groups, and in which most people
have no alternatives to dealing with corrupt officials.

9. Collapsed bridge in China(Harbin) in 2011
killing 3 people

11. Causes of Corruption in Construction
Sector:
The construction sector is estimated globally to be worth US$3,200 billion per year
andUS$250 billion is spent annually on infrastructure in the developing world alone.
However, worldwide, the construction sector is known for its association with
corruption. Corruption in the construction industry covers new build contracts
refurbishment contracts, as well as maintenance contracts. Corruption in the sector
includes all forms and can be found at all levels from high ranking officials diverting
funds and international companies offering bribes for contracts.

12. Causes of Corruption in Construction
Sector:
Corruption in the construction industry often results from a combination of:
 Blackmailing
 Political Interference
 Monopolistic nature of service delivery
 Close relationship between contractors
 Subcontractors (Complexities)

13. Forms of Corruption:
Forms of corruption in the construction industry can be summarized in two groups
 Contractor related
 Professional Consultant, clients or government officers related

14. Contractor Related Corruption:
The forms of corruptions related to contractors include, for example, the construction
company offer bribes to client or the tender evaluation committee members in order
to win the project; purposely lower the tendering prices or collusion in the tendering
prices among construction companies using of substandard materials or workmanship
and submitting false reports of project expenditure.

15. Professional Consultant, Clients or Government
officers related Corruption:
The forms of corruption related to consultants, clients or government officers include
administrative interference, illegal award of contract or subcontract of construction
projects, disclosure of confidential project baseline price information to some
companies prior to tendering, and clients or government officers asking for money or
in-kinds from contractors.

16. Criminal Offences included by corruption:
Corruption can include following
 Bribery
 Extortion
 Fraud
 Embezzlement
 Kickbacks

18. Bribery:
Bribery can be defined as the demanding, receiving, offering or giving of an undue
reward by or to any person in order to influence his behavior. A bribe may be a cash
payment, or a non-cash advantage.

19. Extortion:
Extortion is a form of blackmail. Extortion is a criminal offense, which occurs, when a
person unlawfully obtains either money, property or services from a person, entity, or
institution, through coercion.

20. Fraud:
Fraud is theft through misrepresentation. A representative of one party may try to
deceive a representative of another party. The party using the deception will normally
be attempting wrongfully to extract payment or advantage from another party, or to
deny another party a due payment or advantage. These practices can also be referred
to by various different names such as deception, anti-competitive practices or claims
inflation.

21. Embezzlement:
Embezzlement is the misappropriation of corporate or public funds. Embezzlement is a
term used to describe the act of dishonestly misappropriating funds by an individual
to whom the funds have been entrusted. Embezzlement may range from the very
minor in nature, involving only small amounts, to the immense, involving large sums.

22. Kickbacks:
Kickbacks refer to sweeteners or rewards for favorable decisions. A kickback is
effectively a bribe; a collusive agreement designed to help or influence an individual,
company, or government entity.

23. Consequences of Corruption:
Corruption in the construction sector typically results in:
• Lower economic growth rates.
• Ineffective government.
• Violation of civil and political rights.
• Decrease in investment of foreign and domestic investors.
• Lower quality of public infrastructure due to the loss of revenue, diversion of public
funds, and evasion of taxes associated with corruption mean that governments have
less to spend on infrastructure and
• Reduced effectiveness of provision of public goods as sectors that do not lend
themselves to grand corruption, such as social services, are given less emphasis than
those that offer greater opportunities for corruption.

24. Strategies to prevent corruption:
To prevent corruption, the strategies suggested are:
• Development of honest and ethical construction culture.
• Institution of random and regular checks and
• Supervision of processes and work over project life cycle.

26. References:
 www.google.com
 www.wikepedia.com
 www.scribd.com