Procurement Riddles (Part 1)

June 3, 2014

One field where the “fight” against corruption has been perhaps the least effective is procurement, rather referred generally as contracting. It is difficult to put it more bluntly. The technical director (now on leave) of the company in charge of building the Berlin Airport (BER) is currently being investigated for alleged bribery. In his former role as consultant to this same company, and apparently with powers to award contracts, he may have requested a bribe in the amount of 500 thousand Euros to award a contract[i]. In Colombia, 9 thousand km away and more frequently badmouthed than Germany, a few years ago two brothers and their cousin organized a simple and effective scheme of bribes, revolving doors and conflicts of interest to successfully secure visible infrastructure contracts[ii]. The good thing in both cases? Prosecutors are looking into the matter. The annoying commonalities? This is corruption 1.0: we are not talking about sophisticated, complex, high-tech schemes that would escape expert scrutiny. Read the rest of this entry »

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