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

Authors: Paul Bowen; Peter Edwards; Keith Cattell

Addresses: Department of Construction Economics and Management, University of Cape Town, Private Bag, Rondebosch 7701, Cape Town, South Africa ' School of Property, Construction and Project Management, RMIT University, GPO Box 2476, Melbourne, VIC 3001, Australia ' Department of Construction Economics and Management, University of Cape Town, Private Bag, Rondebosch 7701, Cape Town, South Africa

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.

DOI: 10.1504/IJPOM.2015.068003

International Journal of Project Organisation and Management, 2015 Vol.7 No.1, pp.72 - 97

Received: 20 Oct 2011
Accepted: 23 Mar 2012
Published online: 31 Mar 2015 *

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