Construction sector “extremely prone” to corruption

The Star 15/09/2005

KUALA LUMPUR: The construction sector is “extremely prone” to corruption and industry players say graft and bureaucracy are choking the multi-billion ringgit business.

Political will is needed to fight this scourge, they told a forum here.

“There are occurrences where people do pay to get a job, and it is a known fact that those who pay are afraid to report for fear of being blacklisted,” said Malay Contractors Association president Datuk Roslan Awang Chik.

He said it was sad to note the giving of small bribes growing into the giving of bigger ones and becoming a way of life.

“It has become a custom, and it should be wiped out or society is going to suffer in future, especially the future generation.

“It would be a sad day if this was passed on as a tradition to our children. This is not the society we want to have.”

Roslan was speaking at the two-day “Integrity in the Construction Sector” forum held at the Malaysian Institute of Integrity (MII), which ended on Tuesday.

According to him, every time contractors asked for a favour, they had to pay a bribe.

“From licensing and tendering to consultation and approval of projects, or from the acceptance to the completion of a project, we have to give out money.

“If you hold on to your principles, you don’t get the job.”

Speakers at the forum noted that the industry was extremely prone to corruption because too many players were involved in the chain of work.

“There is always a giver and receiver – contractors and decision makers, contractors and consultants, and contractors and suppliers,” said Roslan.

Former director-general of the Anti-Corruption Agency Datuk Shafee Yahaya, also an MII member, said the Government should act quickly to curb the growing corruption.

“It is the failure of the delivery system. Industry players are suffering because of red tape.

“States, ministries and the Government must give priority (to addressing the problem). Political will is paramount,” he added, Bernama reports.

The forum was told that the industry was fraught with delays in approval of projects, uncompleted projects, poor quality of work, cost overruns and late payments to contractors, which could be corruption-linked, either directly or indirectly.

Industry players also admitted that the level of integrity was “rather low”.

Speakers also said graft raised costs and lowered the quality of development, and corrupt contracting processes would leave developing countries saddled with sub-standard infrastructures and excessive debts.

“The end product reflects the integrity of the entire industry,” said International Islamic University Malaysia’s Prof Dr Khairuddin Abdul Rashid.

He added: “The whole procurement chain needs to be checked, and policy makers and industry players must correct the weaknesses.”

In view of the practices that have tarnished the sector’s image, the Government has proposed a code of ethics likely to be implemented next year.

Works Minister Datuk Seri S. Samy Vellu, who opened the forum, said improved transparency could have significant impact on the public sector procurement and tendering system.

“Having an efficient and transparent process will reduce uncertainty as well as limit the opportunities for corruption and graft,” he said.