Corruption and Internal Fraud in the Turkish Construction Industry

Department of Civil Engineering, Middle East Technical University, 06800, Ankara, Turkey, .
Science and Engineering Ethics (Impact Factor: 1.52). 02/2012; 19(2). DOI: 10.1007/s11948-012-9356-9
Source: PubMed

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. "
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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). "
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