World Bank report: Fraud, Corruption and Collusion in the Roads Sector

World Bank report: Fraud, Corruption and Collusion in the Roads Sector

From the article on the report

At the same time, roads projects around the globe remain plagued by fraud, corruption, and collusion. A Transparency International poll ranked construction as the industry most prone to corruption and a survey of international firms revealed that companies in the construction industry were more likely than firms in any other sector to have lost a contract because of bribery. World Bank-financed projects are not immune. Roughly one-fourth of the 500 plus projects with a Bank-funded roads component approved over the past decade drew one or more allegations of fraud, corruption, or collusion; to date, the Bank’s Integrity Vice Presidency (INT) has confirmed allegations in 25 projects resulting in 29 cases of misconduct under Bank rules.

Link to the .PDF Report

Article on the Report

This really isn't a revelation but it is acknowledgement even though wrongdoing is shifted to the other side. It's kind of like if you give your kids money to buy something, and they go waste it on booze. Do you keep giving it to them?

i guess it's too much to ask that a representative of the IMF monitor each road project. some right-out-of-school accountant majors might like to have that job. since this is not done, then this is just a sham way of absconding with funds being done by contruction firms on the take. at least 25% of them anyway.

Originally posted by jimmyx
i guess it's too much to ask that a representative of the IMF monitor each road project. some right-out-of-school accountant majors might like to have that job. since this is not done, then this is just a sham way of absconding with funds being done by contruction firms on the take. at least 25% of them anyway.

To me it doesn't seem much different than the banks or the agents that were handing out sub-prime mortgages. Everyone knew that people were going to default on those loans, but no one cared because they got repackaged and sold off.

Just as no one at the IMF cares, because they debt is passed off to the countries that take the loans.