The Global Infrastructure Anticorruption Centre
Publication: Leadership and Management in Engineering
Volume 9, Issue 3
Abstract
A zero-tolerance policy for corruption is increasingly being adopted by companies, governments, project owners, and funders. The concern for these stakeholders is no longer whether they should seek to eliminate corruption in their organizations, projects, or business dealings, but how to do so. The Global Infrastructure Anticorruption Centre (GIACC) was founded to promote the implementation of anticorruption measures as an integral part of government, corporate, and project management. GIACC provides resources and services for use by all stakeholders for the purpose of preventing corruption in the infrastructure, construction, and engineering sectors. One comprehensive project management resource is the Project Anticorruption System. The GIACC Advisory Council is looking at strategies to increase effectiveness for the organization.
Corruption, in the form of bribery, extortion, fraud, and cartels, is still widespread in the infrastructure, construction, and engineering sectors. In many countries and for many stakeholders, it causes considerable hardship and financial loss. However, there has been a significant change in attitude towards corruption. Whereas previously corruption may have been tolerated as a necessary or unavoidable practice, it is now increasingly acknowledged that corruption is unacceptable. As a result of this change in attitude, a policy of zero-tolerance for corruption is being adopted by companies, governments, project owners, and funders. The concern for these stakeholders is no longer whether they should seek to eliminate corruption in their organizations, projects, or business dealings, but how to do so. Consequently, while it is still necessary to continue to raise awareness about corruption, there is a growing need for practical tools and advice as to how to implement anticorruption measures.
In order to help answer this need, the Global Infrastructure Anticorruption Centre (GIACC) was founded in May 2008. It is an independent not-for-profit organization that is based in England, but operates internationally.
Objective and Policy
The objective of GIACC is to promote the implementation of anticorruption measures as an integral part of government, corporate, and project management.
This objective seeks to address corruption in a systematic manner similar to the way in which safety, quality, and environmental risks are now routinely controlled, namely, by the introduction of procedures, training, monitoring, reporting and enforcement. To meet this objective, GIACC provides resources and services for use by all stakeholders for the purpose of preventing corruption in the infrastructure, construction, and engineering sectors.
It is GIACC’s policy to promote change in the future. It does not seek to cast blame on any particular group of participants in these sectors for the existence of corruption, nor does it investigate or report on allegations of corruption.
The Resource Center
The GIACC Resource Centre (www.giaccentre.org) is a Web-based resource, which provides free access to information, advice, and tools designed to help stakeholders understand, prevent, and identify corruption. This resource is provided free of charge because it is believed that the best chance of reducing corruption is if all governments, project owners, funders, and companies worldwide move toward common anticorruption practices. To do this, they need access to best practices regardless of their ability to pay. Resources include:
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detailed analyses of what is corruption, why corruption occurs, how corruption occurs, why avoid corruption, liability for corruption, and cost of corruption;
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examples of corruption;
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anticorruption programs for governments, funders, project owners, companies, and associations;
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project management resource: Project Anticorruption System (PACS);
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anticorruption tools such as claims code, contract terms, corporate code, due diligence, employment terms, gifts and hospitality policy, procurement, reporting, rules, training, transparency;
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advice on how to deal with corrupt situations; and
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information on anticorruption conventions, indices, surveys, forums, and initiatives.
Project Anticorruption System
As part of its objective, GIACC promotes the implementation of the Project Anticorruption System (PACS), which can be accessed on the GIACC Web site.
The philosophy behind PACS is threefold:The Project Anticorruption System is, therefore, a comprehensive system designed to be implemented as part of project management in order to assist in the prevention and detection of corruption on construction projects. It uses a variety of anticorruption measures. These measures impact on all project phases, all major participants, and a number of contractual levels. The System comprises the PACS Standards and the PACS Templates.
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First, it recognizes that much of the damage caused by corruption occurs at the project level, and that consequently corruption must be addressed at that level.
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Second, it recognizes that corruption on construction and engineering projects is a complex problem to which there is no easy solution. Such corruption can occur in the form of bribery, extortion, fraud, deception, cartels, collusion, abuse of power, embezzlement, trading in influence, money laundering, and equivalent criminal offences. It can take place during any phase of a project, including project identification, planning, financing, design, tender, execution, operation, and maintenance. It may involve the government, project owner, funders, consultants, contractors, sub-contractors, suppliers, joint venture partners, and agents. It may occur at any level of the contractual structure. It is usually concealed and those aware of it are either complicit in it or reluctant to report it. This makes it more difficult to detect.
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Third, it seeks to address this problem by a systematic process similar to that which has been used in relation to safety and quality issues. During the last , material improvements have been made to the safety of personnel in factories and on construction sites. Similarly, significant improvements have been made to the quality of manufactured products and construction projects. These improvements have come about only as a result of improved management practices. These practices include detailed written procedures, contractual obligations, training, independent inspection, audit, reporting, and enforcement. These improvements have been achieved as a result of hard work and increased resources. A similar approach needs to be taken in relation to corruption prevention.
The PACS Standards recommend and describe anticorruption measures which should be integrated into the management of construction projects. These Standards are designed primarily for implementation on public sector projects (those which are wholly or partly owned, financed, or guaranteed by the government or a taxpayer-funded body). As public money is at stake, it is vital that proper anticorruption controls are put in place. However, PACS can also be used by private sector project owners. The PACS Standards have been designed with the intention that they should all be used in order to achieve the maximum level of anticorruption protection. However, it is recognized that implementation of all PACS Standards to their full extent may, in some cases, be impractical or unduly costly. Consequently, implementation needs to be tailored to the size and value of the project. On major projects, the full measures may be used. On smaller projects, only some of the measures, or simplified versions of the measures, may be used. In addition, the measures need to be adapted to take account of local laws and procedures.
Implementation of the PACS Standards may be required by:There are twelve PACS Standards, each of which deals with a separate anticorruption measure. These are summarized below.
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a government regulatory authority, which may require (through law or regulation) that some or all of the PACS measures are implemented on all public sector projects, or on public sector projects above a certain value or size;
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a project funder, which may require some or all of the PACS measures to be implemented on all its funded projects, or on all projects above a certain value or size (this may be made a condition of providing funding); and
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a public or private sector project owner, who may decide to implement some or all of the PACS measures on its projects.
1. Independent assessment. An independent assessor should be appointed whose duty is, for the duration of the project, to monitor and assess the project for corruption and make appropriate reports. In the case of a large and complex project, an independent assessor may be appointed specifically for that project. For smaller projects, an independent assessor may be appointed to monitor a number of projects.
2. Transparency. The government or project owner should disclose project information to the public on a Web site on a regular basis and in an easily accessible and comprehensible form.
3. Procurement. The project owner should implement fair and transparent procurement procedures which do not provide an improper benefit or advantage to any individual or organization.
4. Precontract disclosure. At the bidding stage, the project owner and each bidder for a major contract should provide each other with relevant information which could reveal a risk of corruption (for example in relation to their principal shareholders, officers, financial status, agents, joint venture partners, major subcontractors, criminal convictions and debarment). Each major contractor should do the same with each bidder for its major subcontracts.
5. Project anticorruption commitments. The project owner and each major project participant should provide anticorruption contractual commitments which expressly cover the main types of corruption, and which oblige them to implement anticorruption measures. Remedies should be specified in the event of breach of these commitments.
6. Funder anticorruption commitments. The project owner and each project funder (equity investor, bank, or guarantor) should provide anticorruption contractual commitments to each other which expressly cover the main types of corruption, and which oblige them to implement anticorruption measures. Remedies should be specified in the event of breach of these commitments.
7. Government anticorruption commitments. Relevant government departments should take steps to minimize extortion by their officers in the issuing of permits, licences, and approvals. They should appoint a senior officer to whom complaints of bribery and extortion can be made, and should publicize a list of fees and time-scales that apply to government procedures.
8. Raising awareness. Major project participants should raise awareness among their staff of the damage and risks of corruption by posting anticorruption rules at all project and site offices, providing anticorruption training for relevant staff, implementing a gifts and hospitality policy.
9. Compliance. Major project participants should appoint a compliance manager who will take all reasonable steps to ensure compliance by the company and its management and staff with their anticorruption commitments.
10. Audit. Financial audits should be carried out to ensure as far as possible that all payments by the project owner have been properly made to legitimate organizations for legitimate services. Technical audits should be carried out to ensure as far as possible that the project design, specification, and construction are in accordance with good technical practice and provide value for money. Auditors should be aware of the risk that any deficiencies they identify may be caused by corruption, and should make appropriate reports.
11. Reporting. Safe and effective systems should be established by which corruption on the project can be reported by the public, by project staff, and by the independent assessor.
12. Enforcement. Enforcement measures for breach of anticorruption commitments should include civil enforcement (e.g., disqualification from bidding, termination of contracts, damages, and dismissal from employment). The risk of criminal enforcement (e.g., fines and imprisonment) should be highlighted.
The PACS Templates are model agreements and tools which parties can use to help implement anticorruption measures on projects.
Further detail on the PACS Standards and Templates can be found at: www.giaccentre.org/project_anti_corruption_system_home.php.
GIACC Services
In addition to the Resource Centre, GIACC provides anticorruption services. These services include:Resources and services are provided for the assistance of all stakeholders in the infrastructure, construction, and engineering sectors, including governments, project owners, funders, contractors, consulting engineering firms, and suppliers of equipment, materials, and services.
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advice relating to the design and implementation of government, corporate, and project anticorruption measures;
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independent assessment of the adequacy of government, corporate, and project anticorruption measures, and, where appropriate, independent certification of such measures;
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independent anticorruption compliance monitoring;
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anticorruption training workshops on the nature, extent, consequences, and risks of corruption, and on the prevention of corruption; and
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general advice on corruption-related issues.
Achieving GIACC’s Objective
The Global Infrastructure Anticorruption Centre intends to achieve its objective primarily by working worldwide in close collaboration with all stakeholders and, in particular, with the professionals who are involved in the infrastructure, construction, and engineering sectors. These professionals have the necessary skill, influence, determination, and integrity to be able to achieve the implementation of anticorruption measures as an integral part of government, corporate, and project management. In addition, these professionals work for or advise all stakeholders in the sector, including governments, project owners, funders, contractors, consulting engineering firms, and suppliers of equipment, materials and services, and are therefore uniquely placed to implement anticorruption measures.
GIACC is developing an international network of affiliates. These will be independent not-for-profit organizations which will be registered in their country of operation. They will promote GIACC’s objectives within that country, and will cooperate with other members of the GIACC network. GIACC is also forming alliances with international, regional, and national organizations. The organizations in these alliances will cooperate together on a project-by-project basis, with a view to promoting the implementation of anticorruption measures.
The GIACC Advisory Council has been established to advise GIACC in relation to (1) how GIACC can better achieve its objective, (2) how the members of the GIACC network can better cooperate and work together, and (3) how the GIACC Resource Centre can be improved. The Advisory Council comprises individuals who have made a significant contribution to fighting corruption in the infrastructure, construction, and engineering sectors, and also representatives from GIACC and the GIACC affiliates.
Catherine Stansbury is the co-founder and director of the Global Infrastructure Anticorruption Centre. She can be reached by e-mail at [email protected].
Information & Authors
Information
Published In
Leadership and Management in Engineering
Volume 9 • Issue 3 • July 2009
Pages: 119 - 122
Copyright
© 2009 ASCE.
History
Received: Jan 7, 2009
Accepted: Mar 19, 2009
Published online: Jun 15, 2009
Published in print: Jul 2009
Authors
Metrics & Citations
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