Corruption in the South African construction industry: experiences of clients and construction professionals

Paul Bowen, Peter Edwards and Keith Cattell

International Journal of Project Organisation and Management, 2015, vol. 7, issue 1, 72-97

Abstract: Using an online survey, the experiences and opinions of clients and construction professionals were sought regarding corruption in the South African construction industry. Corruption is considered widespread. Conflicts of interest, tender rigging (collusion), 'fronting' and 'kickbacks' are the forms of corruption most encountered. Government officials (as clients), contractors, and sub-contractors are perceived to be the most involved in corrupt activities, but professional consultants and clients are not exempt. Forms of corruption most associated with government officials are the awarding of contracts for political gain, nepotism and conflicts of interest, and interference in the tender award process. Contractors and sub-contractors employ illegal workers, and engage in collusive tendering. Corruption is most prevalent during the bid evaluation and tendering phases of projects. Facilitating factors include a lack of transparency in the awarding of contracts and the operating environment of the industry. Corruption is seldom reported to the police. Barriers to reporting include a lack of confidence in the criminal justice system, a belief that no action will be taken, and a perception that 'whistle-blowers' are not adequately protected. The construction industry and public sector agencies should adopt a more proactive stance against corruption and be more cooperative in detecting and reporting it.

Keywords: corruption detection; corruption reporting; construction industry; clients; construction professionals; South Africa; conflicts of interest; tender rigging; collusion; fronting; kickbacks; corrupt activities; government officials; political gain; nepotism; illegal workers; collusive tendering; bid evaluation. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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