Corrupt practices related to the state-owned water contract company Acuamed have caught the attention of the Spanish media in the last few weeks. The investigation stems from allegations into improprieties around the handling of public contracts.
Bruce Goslin, executive managing director at K2 Intelligence in Madrid, states in an opinion article in the Spanish financial daily El Economista (27 January 2016) that the implementation of control mechanisms can help to prevent certain corruption and fraud practices particularly common in the construction industry.
Among the measures that would help to address this problem, Goslin explains, is the appointment of an independent integrity inspector to conduct a thorough monitoring of the work, a position commonly used in some countries, including the United States. “The cost of this monitoring is generally a very reasonable percentage, less than 2% of the budget of the construction project, but it eliminates the damage resulting from the fraudulent practices and instances of corruption such as material substitution, illegal commissions, overcharging, etc., so the total saving is significant,” concludes Goslin.
Read the full article. (Note: El Economista is a Spanish-language publication.)