Corruption and Internal Fraud in the Turkish Construction Industry
ABSTRACT The purpose of this paper is to develop an understanding about the internal fraud and corruption problem in the Turkish construction industry. The reasons behind the internal fraud and corruption problem as well as the types of prevention methods were investigated; and as a result various recommendations were made. To this end, a risk awareness questionnaire was used to understand the behavioral patterns of the construction industry, and to clarify possible proactive and reactive measures against internal fraud and corruption. The type of fraud experienced by Turkish construction companies was also surveyed in the questionnaire. The questionnaire was sent to 89 firms; and depending on the collected data, certain recommendations for construction industry professionals were provided.
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- "Considering that the construction industry in general and in Norway in particular typically receives attention as an industry of doubtful virtue, (1) where neither the police, the tax authorities nor the professional organisations fully master the challenges posed by professional practice (Andersen et al., 2014), (2) where the inherent complexity in itself opens the opportunity for suspicious dealings (Gunduz & Önder, 2012), (3) where fraudulent business practices undermine the reputation of the industry (Slettebøe et al., 2003), (4) that lacks a clear vision based on a fortified ethical foundation (Constructing Excellence, 2009:18). We find this strange. "
ABSTRACT: In this paper, a pilot study on the commissioning processes in Norwegian construction projects is reported upon. The study was undertaken in order to address both the general questions of ethics in construction project management, and more specific questions pertaining to the commissioning phase of such projects. In addition to a literature review and a documentation study, 13 semi-structured interviews were carried out according to a qualitative approach. Four of these were general in nature (with clients) and nine case-specific (with client, contractor and user representatives). Based on the results, a description of ethical challenges in commissioning in construction is established. The findings indicate that a commissioning process poses significant challenges in light of hidden agendas and power play among actors. Clients and contractors tend to be systematically suspicious of one another. Major costs in play reinforce this. The findings included the signs of actors repetitively utilising the complexity involved in the commissioning phase for own benefit at the expense of other actors, which is relevant for both clients and contractors. Further research is needed in order to clarify the challenges involved and to develop appropriate measures to address these challenges.Procedia Economics and Finance 12/2015; 21. DOI:10.1016/S2212-5671(15)00175-6
Journal of Professional Issues in Engineering Education and Practice 09/2015; DOI:10.1061/(ASCE)EI.1943-5541.0000241
- "This paper is part of the Journal of Professional Issues in Engineering Education and Practice, © ASCE, ISSN 1052-3928/ 05015001(11)/$25.00. Bowen et al. 2012; Gunduz and Önder 2013; Le et al. 2014b "
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- "It is estimated that corruption vulnerabilities may result in a loss ratio of project cost ranging from 10 to 50 % (Jain 2001). Therefore, a growing number of research efforts have been devoted to related issues in recent years (Alutu 2007; Sohail and Cavill 2008; de Jong et al. 2009; Bowen et al. 2012; Tabish and Jha 2011, 2012; Gunduz and O ¨ nder 2013; Le et al. 2014a, b). Corruption vulnerabilities commonly exist in both developed and developing countries with various political and economic systems (Ehrlich and Francis 1999; Cendrowski et al. 2007; Melgar et al. 2009). "
ABSTRACT: Response strategy is a key for preventing widespread corruption vulnerabilities in the public construction sector. Although several studies have been devoted to this area, the effectiveness of response strategies has seldom been evaluated in China. This study aims to fill this gap by investigating the effectiveness of response strategies for corruption vulnerabilities through a survey in the Chinese public construction sector. Survey data obtained from selected experts involved in the Chinese public construction sector were analyzed by factor analysis and partial least squares-structural equation modeling. Analysis results showed that four response strategies of leadership, rules and regulations, training, and sanctions, only achieved an acceptable level in preventing corruption vulnerabilities in the Chinese public construction sector. This study contributes to knowledge by improving the understanding of the effectiveness of response strategies for corruption vulnerabilities in the public construction sector of developing countries.Science and Engineering Ethics 06/2014; 21(3). DOI:10.1007/s11948-014-9560-x