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Ware, Glenn T.; Moss, Shaun; Campos, J. Edgardo; Noone, Gregory P. --- "Corruption in Procurement" [2011] ELECD 992; in Graycar, Adam; Smith, G. Russell (eds), "Handbook of Global Research and Practice in Corruption" (Edward Elgar Publishing, 2011)

Book Title: Handbook of Global Research and Practice in Corruption

Editor(s): Graycar, Adam; Smith, G. Russell

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849805018

Section: Chapter 5

Section Title: Corruption in Procurement

Author(s): Ware, Glenn T.; Moss, Shaun; Campos, J. Edgardo; Noone, Gregory P.

Number of pages: 57

Extract:

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 devel-
oping 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 capabil-
ity 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 ...