Corruption Rife Uk Construction Industry Says Ciob

Almost half of all construction workers believe that corruption is merely part and parcel of the profession, according to a recent survey by the Chartered Institute of Building (CIOB) (CIOB).

The survey indicates that 48 percent of construction professionals feel that corruption is endemic within the UK construction industry. Several people have pointed to cultural norms and economic factors as the primary culprits.

The poll, of 700 construction professionals, aims to determine if corruption is thought to be an issue within the UK construction sector, what behaviours are deemed to be corrupt, and whether elements of the building process may be susceptible to corruption.

Michael Brown CIOB deputy chief executive said: “Our findings reveal that little progress has been made since our first piece of research into corruption in 2006. What we have observed is that cultural practises and the implications of the crisis have placed a stronger demand on organisations to sometimes participate in undesirable behaviours as a survival mechanism.”

The findings of the report are sobering. On at least one occasion, more than one-third stated they had been offered a bribe or other form of enticement. And over a thirdhad come across cartel behaviour in the UK construction business on at least one occasion. A whopping 29% of those polled have had firsthand experience with it in the past year.

About half of those polled had no idea if their company had a policy in place for reporting wrongdoing, and only 7% of those polled claimed they had actually used it, with different degrees of success.

Despite the fact that 45 percent of the sample described themselves as senior management or director level, more than half of the respondents were unable to estimate the annual cost of fraud or corruption to their organisation. Nearly 10 percent additionally indicate annual losses reaching £1 million or more as a result of fraud and corruption.

Graham Hand, Coordinator of the UK Anti-Corruption Forum, said: “This valuable report shows that despite the introduction of a tough new Bribery Act in 2010, corruption is still common in the construction business in this country. That can’t happen. Companies need to be educated about their duties, and law enforcement agencies must take action against those that break the law.

According to the CIOB, efforts to combat corruption, such as the Bribery Act, appear to have had only a minimal impact, as no corporations have been prosecuted as a result. A new request has been made by the construction industry’s trade association for government intervention in the fight against corruption.

“If the UK is going to live up to its rhetoric of being tough on corruption, both the Government and industry must do more to show proof of progress” added Brown.

Approximately one percent of EU GDP is lost each year as a result of corruption, according to EU estimates from the Commission. Globally, the economic cost of corruption is estimated to be over US $2.6 trillion, more than 5 percent of total world GDP.

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Last Updated on December 29, 2021

Indra-Gupta

Author: Indra Gupta

Indra is an in-house writer with a love of Newcastle United and all things sustainable.

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