Build it and they will come: infrastructure corruption risks

Speaker:
Ray Bange FIEAust, FAIM
Principal, Probity Consultants International

Abstract:
Australia stands at the beginning of one of the most intense periods of infrastructure development in its history. Already facing the need to invest heavily to renew ageing infrastructure and to meet growth and capacity demands, the Global Financial Crisis has impelled the introduction of a broad range of stimulus initiatives incorporating fast-tracked infrastructure development programs.

From the $43 billion National Broadband Network to multibillion dollar hospital and transportation projects, down to individual local government and school maintenance programs, it is anticipated during the coming years that infrastructure expenditure will be on a scale that has rarely been witnessed before, and touching nearly every sector of the community.
But what are the likely corruption risks that will accompany the financial and execution hazards in such activities?
Drawing on his background as a professional civil engineer with more than 15 years experience as a systems analyst and corruption prevention expert, the author will explore the special factors that influence corruption risk in infrastructure development.

Examples of potential risks in project initiation, contract development, procurement and project execution will be examined from the perspective of his involvement as the senior liaison advisor with the Hong Kong Independent Commission Against Corruption on the giant Hong Kong Airport development project and associated reclamation, such as tunnel, bridge, road, rail and building infrastructure projects, as well as major hospital, theme park and utility developments within the Hong Kong Special Administration Region (SAR).

In addition to ‘hard’ infrastructure projects, reference will be made to areas, such as IT and Communications infrastructure arising from project work undertaken in his role as a risk management consultant and senior advisor with the Crime and Misconduct Commission, Queensland.

This keynote address outlines the dimensions of corruption risk and the need for better governance in the delivery of infrastructure and performance of infrastructure services. It assesses the potential of greater accountability to minimise corruption and discusses some of the practical elements of fraud and corruption control, thereby providing a contextual overview in which to consider the detailed coverage of the case studies which follow.