Edited by Adam Graycar and Russell G. Smith
Chapter 5: Corruption in Procurement
* Glenn T. Ware, Shaun Moss, J. Edgardo Campos and Gregory P. Noone1 INTRODUCTION Corruption is a worldwide scourge that afflicts both developed and developing countries alike and which requires constant attention by many sectors of society if it is to be kept in check. It has its most damaging impact, however, on those weakened systems that have the least capability to prevent, detect, and stop its debilitating effects.2 The African Union estimates that approximately one quarter (or US$148 billion) of Africa’s gross domestic product is ‘lost to corruption each year’.3 In Kenya alone, international donors estimate that since 2002, nearly one billion dollars has been stolen as a result of corruption.4 In Asia, the Asian Development Bank (ADB) reports that in one Asian country, approximately US$48B may have been lost to corruption over a 20-year period.5 And, in Latin America, the Inter-American Development Bank (IADB) estimates that about 10 per cent of GDP is on average lost to corruption annually.6 This social pandemic has been pervasive in public procurement. It distorts public finance, impairing the delivery of public services, such as the building of schools, the provision and quality of medical care and, ultimately, retarding efforts to reduce poverty. Globally, Transparency International estimates that at least US$400 billion per year is lost to bribery and corruption in public procurement, increasing government costs by about 20 to 25 per cent.7 In Asia, the ADB has noted that several countries have paid 20 to 100 per cent more for...
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