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Preventing Fraud in Overseas Construction Projects

Feb 26, 2015
From the KPMG Institutes

Preventing Fraud in Overseas Construction Projects

Trace International, a global anticorruption organization, publishes an annual "Global Enforcement Report." which identifies industry sectors that have experienced the most domestic and foreign bribery enforcement activity since 1977.

In the 2013 report, the engineering and constructions (E&C) industry is cited among the top five industry sectors for worldwide domestic/inbound and foreign/outbound Foreign Corrupt Practices Act (FCPA) enforcement activity, with nearly 40 firms under investigation.

The level of bribery and corruption in the E&C industry may be attributed to the size and complexity of many E&C projects, the use of the third-party intermediaries, and/or the geographic locations where projects are carried out, among others.

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