Chapter 11 Corruption and Public Procurement

2^ Susanne Kühn & Laura B. Sherman, Curbing Corruption in Public Procurement: A Practical Guide (Transparency International, 2014) at 4, online: . Kühn and Sherman provide examples of the detrimental effects of corruption in public procurement.

3^ Paul Collier & Anke Hoeffler, “The economic costs of corruption in infrastructure” in Diana Rodriguez, Gerard Waite & Toby Wolfe, eds, Global Corruption Report 2005 (London: Transparency International, 2005) at 13.

4^ Ibid at 6; see also The Global Infrastructure Anti-Corruption Centre, “Why Corruption Occurs”, online: <http://www.giaccentre.org/why_corruption_occurs.php> for an example of the complex web of different parties that can be involved in procurement projects.

5^ World Bank, Press Release, “World Bank to Finalize Padma Bridge Financing” (19 December 2010) online: .

6^ Ibid.

7^ James Lewis, “Earthquake destruction: corruption on the fault line” in Diana Rodriguez, Gerard Waite & Toby Wolfe, eds, Global Corruption Report 2005 (London: Transparency International, 2005) at 23.

8^ Ibid.

9^ David Alexander, “The Italian mafia’s legacy of high-rise death traps” in Diana Rodriguez, Gerard Waite & Toby Wolfe, eds, Global Corruption Report 2005 (London: Transparency International, 2005) at 26.

10^ Ibid.

11^ Susanne Kühn & Laura B. Sherman, Curbing Corruption in Public Procurement: A Practical Guide (Transparency International, 2014) at 4, online: .

12^ Ibid.

13^ Ibid. Like all forms of corruption, corruption in public procurement is extremely difficult to quantify. Even where corrupt activities are identified, it can be very difficult to trace and calculate the chain of losses that flow from corrupt incidences. It is often practically impossible to calculate the quantum of loss. See, for example: The Global Infrastructure Anti-Corruption Centre, “Section 1: Understanding the Cost of Corruption in Relation to Infrastructure Projects”, online: .

14^ Bent Flyvbjerg & Eamonn Molloy, “Delusion, Deception and Corruption in Major Infrastructure Projects: Cases, Conseqeunces, and Cures” in Susan Rose-Ackerman & Tina Soreide, eds, International Handbook on the Economics of Corruption, vol 2 (Northampton, MA: Edward Elgar Publishing, 2011) at 87.

15^ Jean-Bernard Auby, Emmanuel Breen & Thomas Perroud, eds, Corruption and Conflicts of Interest (Northampton, MA: Edward Elgar Publishing, 2014) at 39.

16^ “19-Year Corruption Sentence for Ex-Manager With Army Corps of Engineers”, The New York Times (12 July 2013), online: .

17^ Tina Soreide, “Corruption in Public Procurement: Causes, Consequences, and Cures” (Chr Michelson Institute, 2002) at 1. Study referenced is Susan Rose-Ackerman, Corruption and Government: Causes, Consequences and Reform (Cambridge: Cambridge University Press, 1999).

18^ The Charbonneau Commission was created on 9 November 2011 in order to investigate claims of corruption in the construction industry in Quebec. The Commission’s final report is set to be released November, 2015. The Commission’s official website is in French and available online: .

19^ Quebec, Decree on the Commission of Inquiry on the Awarding and Management of Public contracts in the Construction Industry, OC 1119-2011 (9 November 2011) online: .

20^ Martin Patriquin, “Quebec: The most corrupt province”, Maclean’s (24 September 2010), online: .

21^ Barrie McKenna, “Quebec’s corruption scandal is a Canadian problem”, The Globe and Mail (10 December 2012) at A1.

22^ Barrie McKenna, “Corruption that infected Quebec construction industry may not be unique”, The Globe and Mail (10 December 2012) at B14.

23^ Decentralization Thematic Team, Accountability, Transparency & Corruption in Decentralized Governance (World Bank, 2008).

24^ Martin Auger, Defence Procurement Organizations: A Global Comparison (Ottawa: Library of Parliament, 2014), online: .

25^ Transparency International, Bribe Payers Index 2011 at 15. The 2011 Bribe Payer’s Index is Transparency International’s most recent Bribery Index. Industries that ranked higher than (i.e. were less corrupt than) the construction industry include the mining, oil and gas, banking and finance, and the arms, defence, and military industries.

26^ Susanne Kühn & Laura B. Sherman, Curbing Corruption in Public Procurement: A Practical Guide (Transparency International, 2014) at 20, online:

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