‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts
"Red flags" are indicators of potential issues regarding governance failure, collusion or corruption in projects. While some specific red flags can be powerful indicators of issues to be addressed, the hypothesis of this paper is that man...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100322093911 http://hdl.handle.net/10986/3731 |
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okr-10986-37312021-04-23T14:02:12Z ‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts Kenny, Charles Musatova, Maria ACCOUNTING AFFILIATED ORGANIZATIONS ALLEGATIONS OF CORRUPTION AUCTION AUCTIONS AUTHORS BANK POLICY BANK PROCUREMENT BANK PROCUREMENT REQUIREMENTS BID BID DOCUMENTS BID EVALUATION BID EVALUATION COMMITTEE BID EVALUATION REPORT BID EVALUATION REPORTS BID OPENING BID PREPARATION TIME BID SECURITIES BIDDER BIDDERS BIDDING DOCUMENTS BIDS BONDS BRIBES CAPACITY BUILDING CERTIFICATION CHECKS COLUMNS COMPETITIVE BIDDING COMPOSITION CONTRACT AWARD CONTRACT NEGOTIATION CONTRACT PRICE CONTRACTOR CONTRACTORS CORRUPT ACTIVITY COST ESTIMATE DEVELOPMENT BANK DISBURSEMENT EMPLOYMENT OF CONSULTANTS EQUIPMENT EVALUATION COMMITTEE MEMBERS EVALUATION PERIOD EXPENDITURES FINANCIAL INSTITUTION FLAG FLAGS FOREIGN COMPANIES FRAUD INFLATION INFORMATION SYSTEMS INTERNATIONAL BANK INTERNATIONAL BIDDERS INTERNATIONAL COMPETITIVE BIDDING INVENTORIES LITERATURE LOAN MARKET PLAYER MARKET SHARES MARKET SIZE MEDIA METHOD OF PROCUREMENT NATIONAL COMPETITIVE BIDDING NEGOTIATION NEGOTIATIONS POTENTIAL BIDDERS PROCUREMENT PROCUREMENT DELAYS PROCUREMENT GUIDELINES PROCUREMENT METHOD PROCUREMENT METHODS PROCUREMENT PRACTICES PROCUREMENT PROCESS PROCUREMENT RULES PROCUREMENTS PROJECT APPRAISAL PROJECT DESIGN PROJECT DOCUMENTS PROJECT IMPLEMENTATION PROJECT MANAGEMENT PUBLIC RECONSTRUCTION REQUESTS FOR CLARIFICATION RESPONSIVE BIDDERS REVIEWS ROAD ROADS SECURITIES SERIAL NUMBERS SOLICITATION SPECIFICATIONS TRANSPARENCY VICTIMS WINNING BID WINNING BIDDER WORLD DEVELOPMENT "Red flags" are indicators of potential issues regarding governance failure, collusion or corruption in projects. While some specific red flags can be powerful indicators of issues to be addressed, the hypothesis of this paper is that many proposed red flags are potentially too ubiquitous and randomly distributed to be useful as indicators of significant governance failure. The paper examines project documentation from a small sample of World Bank water and sanitation projects in an attempt to collect data on the presence or absence of 13 commonly accepted red flags. This paper finds that: (i) almost every contract reviewed raised at least one of 13 red flags analyzed; (ii) potentially tainted contracts did not exhibit notably more red flags than control contracts; and (iii) the occurrence of multiple red flags in the same contract was rare enough to suggest that joint occurrence was largely by chance, not as a result of a strongly causal inter-relationship between flags. The ubiquity and apparent randomness of these red flags suggests that their roll-out as a monitoring tool requires additional thought as to interpretation, context and use. The paper examines an alternate tool for uncovering potential problem projects -- supplier concentration. Across a very small sample, there does appear to be a relationship between such concentration and potential problem projects. 2012-03-19T18:38:48Z 2012-03-19T18:38:48Z 2010-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100322093911 http://hdl.handle.net/10986/3731 English Policy Research working paper ; no. WPS 5243 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AFFILIATED ORGANIZATIONS ALLEGATIONS OF CORRUPTION AUCTION AUCTIONS AUTHORS BANK POLICY BANK PROCUREMENT BANK PROCUREMENT REQUIREMENTS BID BID DOCUMENTS BID EVALUATION BID EVALUATION COMMITTEE BID EVALUATION REPORT BID EVALUATION REPORTS BID OPENING BID PREPARATION TIME BID SECURITIES BIDDER BIDDERS BIDDING DOCUMENTS BIDS BONDS BRIBES CAPACITY BUILDING CERTIFICATION CHECKS COLUMNS COMPETITIVE BIDDING COMPOSITION CONTRACT AWARD CONTRACT NEGOTIATION CONTRACT PRICE CONTRACTOR CONTRACTORS CORRUPT ACTIVITY COST ESTIMATE DEVELOPMENT BANK DISBURSEMENT EMPLOYMENT OF CONSULTANTS EQUIPMENT EVALUATION COMMITTEE MEMBERS EVALUATION PERIOD EXPENDITURES FINANCIAL INSTITUTION FLAG FLAGS FOREIGN COMPANIES FRAUD INFLATION INFORMATION SYSTEMS INTERNATIONAL BANK INTERNATIONAL BIDDERS INTERNATIONAL COMPETITIVE BIDDING INVENTORIES LITERATURE LOAN MARKET PLAYER MARKET SHARES MARKET SIZE MEDIA METHOD OF PROCUREMENT NATIONAL COMPETITIVE BIDDING NEGOTIATION NEGOTIATIONS POTENTIAL BIDDERS PROCUREMENT PROCUREMENT DELAYS PROCUREMENT GUIDELINES PROCUREMENT METHOD PROCUREMENT METHODS PROCUREMENT PRACTICES PROCUREMENT PROCESS PROCUREMENT RULES PROCUREMENTS PROJECT APPRAISAL PROJECT DESIGN PROJECT DOCUMENTS PROJECT IMPLEMENTATION PROJECT MANAGEMENT PUBLIC RECONSTRUCTION REQUESTS FOR CLARIFICATION RESPONSIVE BIDDERS REVIEWS ROAD ROADS SECURITIES SERIAL NUMBERS SOLICITATION SPECIFICATIONS TRANSPARENCY VICTIMS WINNING BID WINNING BIDDER WORLD DEVELOPMENT |
| spellingShingle |
ACCOUNTING AFFILIATED ORGANIZATIONS ALLEGATIONS OF CORRUPTION AUCTION AUCTIONS AUTHORS BANK POLICY BANK PROCUREMENT BANK PROCUREMENT REQUIREMENTS BID BID DOCUMENTS BID EVALUATION BID EVALUATION COMMITTEE BID EVALUATION REPORT BID EVALUATION REPORTS BID OPENING BID PREPARATION TIME BID SECURITIES BIDDER BIDDERS BIDDING DOCUMENTS BIDS BONDS BRIBES CAPACITY BUILDING CERTIFICATION CHECKS COLUMNS COMPETITIVE BIDDING COMPOSITION CONTRACT AWARD CONTRACT NEGOTIATION CONTRACT PRICE CONTRACTOR CONTRACTORS CORRUPT ACTIVITY COST ESTIMATE DEVELOPMENT BANK DISBURSEMENT EMPLOYMENT OF CONSULTANTS EQUIPMENT EVALUATION COMMITTEE MEMBERS EVALUATION PERIOD EXPENDITURES FINANCIAL INSTITUTION FLAG FLAGS FOREIGN COMPANIES FRAUD INFLATION INFORMATION SYSTEMS INTERNATIONAL BANK INTERNATIONAL BIDDERS INTERNATIONAL COMPETITIVE BIDDING INVENTORIES LITERATURE LOAN MARKET PLAYER MARKET SHARES MARKET SIZE MEDIA METHOD OF PROCUREMENT NATIONAL COMPETITIVE BIDDING NEGOTIATION NEGOTIATIONS POTENTIAL BIDDERS PROCUREMENT PROCUREMENT DELAYS PROCUREMENT GUIDELINES PROCUREMENT METHOD PROCUREMENT METHODS PROCUREMENT PRACTICES PROCUREMENT PROCESS PROCUREMENT RULES PROCUREMENTS PROJECT APPRAISAL PROJECT DESIGN PROJECT DOCUMENTS PROJECT IMPLEMENTATION PROJECT MANAGEMENT PUBLIC RECONSTRUCTION REQUESTS FOR CLARIFICATION RESPONSIVE BIDDERS REVIEWS ROAD ROADS SECURITIES SERIAL NUMBERS SOLICITATION SPECIFICATIONS TRANSPARENCY VICTIMS WINNING BID WINNING BIDDER WORLD DEVELOPMENT Kenny, Charles Musatova, Maria ‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5243 |
| description |
"Red flags" are indicators of
potential issues regarding governance failure, collusion or
corruption in projects. While some specific red flags can be
powerful indicators of issues to be addressed, the
hypothesis of this paper is that many proposed red flags are
potentially too ubiquitous and randomly distributed to be
useful as indicators of significant governance failure. The
paper examines project documentation from a small sample of
World Bank water and sanitation projects in an attempt to
collect data on the presence or absence of 13 commonly
accepted red flags. This paper finds that: (i) almost every
contract reviewed raised at least one of 13 red flags
analyzed; (ii) potentially tainted contracts did not exhibit
notably more red flags than control contracts; and (iii) the
occurrence of multiple red flags in the same contract was
rare enough to suggest that joint occurrence was largely by
chance, not as a result of a strongly causal
inter-relationship between flags. The ubiquity and apparent
randomness of these red flags suggests that their roll-out
as a monitoring tool requires additional thought as to
interpretation, context and use. The paper examines an
alternate tool for uncovering potential problem projects --
supplier concentration. Across a very small sample, there
does appear to be a relationship between such concentration
and potential problem projects. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kenny, Charles Musatova, Maria |
| author_facet |
Kenny, Charles Musatova, Maria |
| author_sort |
Kenny, Charles |
| title |
‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| title_short |
‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| title_full |
‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| title_fullStr |
‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| title_full_unstemmed |
‘Red Flags of Corruption’ in World Bank Projects : An Analysis of Infrastructure Contracts |
| title_sort |
‘red flags of corruption’ in world bank projects : an analysis of infrastructure contracts |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100322093911 http://hdl.handle.net/10986/3731 |
| _version_ |
1764388044377423872 |