EXAMPLE OF BRIBERY CASESThe Malaysian Anti-Corruption Commission (MACC) detected there are 156 cases of bribery cases that involved in our country since 2015 until February 2018. State director of MACC said, corruption and bribery in construction industry are in “serious level”. Bribery and corruption already existed in construction industry since long time ago, where it has become one of the “unwritten rule” that offer money that called under-table money so that people involve can secure the projects. The bribe amount involve are really insane which could run into a million of ringgit for only one project.
There are a few examples of bribery cases in construction industry that happened in our country and also outside of our country.On December 2011, there was a corruption case involved local engineering and construction company, Investment Holding II. This company is a company incorporated in the late 2006 as the commercial investment holding company created oversee and encourage regional development in South Johor. Investment Holdings II was to oversee infrastructure planning and master planning of South Johor city. To construct world class infrastructure, the estimated value worth RM4 billions was invested including an upgrade of major road and other utilities. There are two main suspects were arrested in relation to corruption offence involving the development project of boarding school.
The former vice president of Investment Holdings II, suspected soliciting bribery over the development project. Another person was charge known as Mr.S for receiving bribes from construction company D’Engineering Sdn Bhd to secure tender worth RM40.
8 million. Both are pleaded guilty to an alternative charge under Section 165 of the Penal Code.In 2016, the seizure of RM114.5 million in Kota Kinabalu, Sabah was the biggest corruption case involving construction project that happened in our country. This bribery’s case are involving two civil servants in Sabah. Those are the director and deputy director of government agency. The infrastructure project estimated value is RM3.3 billion.
According to Datuk Azam Baki, the MACC deputy chief commissioner (operations), the MACC investigation seizure of RM75 million from the houses, office and bank accounts of the suspects and also both of their families. Datuk Azam Baki said, the arrests of those two government officers led to the arrest of two more people, a businessman titled ‘Datuk’ and his accountant, that suspected strongly linked to those government officers and MACC take some action froze about RM37 millions of that businessman’s company account. The director and deputy director of the government agency was suspected handled those project since 2010. All of them are investigated under section 17 of the MACC Act.Another example of bribery case happened in 2017 at Alor Setar, Kedah. The bribery case was involving over RM20 millions that related with work permits of expatriates and foreign professionals. Kedah MACC detailed two suspects, both are construction contractor and car wash owner.
The construction contractor aged 53 with honorific titled ‘Datuk’ arrested at Kuala Lumpur International Airport (KLIA) whereas another person arrested at his house in Petaling Jaya on the same day. The arrested of the two suspects led to arrest three more suspects that has connection with the same bribery case. Following the arrests, MACC seizure cash worth RM1.
9 millions with many luxury items such as luxury cars and high-end bags. The international construction bribe cases is more gigantic compared to our country. One of the example case happened in New York City. The former head of contracts and procurement of the City Department of Environmental Protection agency (DEP) was involved in bribery case worth $165 million. Ifeanyi Madu, the person that found guilty provide information on DEP projects to three engineering firms. The information about the scope of the work and also the names of individuals who would be selecting the winning companies. According to a summon filed in State Supreme in Manhattan, the information should be secret until it were made public through request of the proposal.
As an exchange for the information, those three engineering firms need to hired subcontracting under Madu. Madu also received bribery in shape of expensive gifts. The official stated that, Madu and his affliates received bribery worth $8.1 millions since 2007 until 2017.
The germination of cross border business activity has generated new opportunities for construction and engineering company. The strong competition between every company to get the project tender led to under-table money. The challenges also created for those person who in charged delivered construction and engineering projects with relevant legal requirements. In some countries, legal frameworks are either non-existent or inadequate as a means of controlling of bribery activities as the government take some initiative to develop controller in order to remotely influence project participants. It can reduce the bribery and corruption case around the world especially in construction industry.
References for example bribery casehttps://www.dorsey.com/newsresources/publications/2013/02/bribery-and-corruption-in-the-construction-indu2__https://www.nst.com.my/news/2017/02/209701/bribery-unwritten-rule-secure-projectshttp://dailyexpress.com.my/news.cfm?NewsID=117639http://english.astroawani.com/malaysia-news/rm114-5-mil-seizure-sabah-corruption-case-biggest-macc-history-118539http://www.sprm.gov.my/index.php/en/corporate-info/199-pembinaan/1042-industri-latar-belakang?templateStyle=21