the crime of bribery committed by the engineer

NAME : MOSTAF ASHRAF MOHAMED HOSNI ELAZAB

DR / HESHAM ELSAFY
ID: 2016222
What is bribery :
Bribery is defined by Black's Law Dictionary as the offering,
giving, receiving, or soliciting of any item of value to influence the
actions of an official, or other person, in charge of a public or legal
duty.[1] With regard to governmental operations, essentially,
bribery is "Corrupt solicitation, acceptance, or transfer of value in
exchange for official action." Gifts of money or other items of
value which are otherwise available to everyone on an equivalent
basis, and not for dishonest purposes, is not bribery. Offering a
discount or a refund to all purchasers is a legal rebate and is not
bribery. For example, it is legal for an employee of a Public
Utilities Commission involved in electric rate regulation to accept
a rebate on electric service that reduces their cost for electricity,
when the rebate is available to other residential electric customers.
However, giving a discount specifically to that employee to
influence them to look favorably on the electric utility's rate
increase applications would be considered bribery
A bribe is an illegal or unethical gift or lobbying effort bestowed to
influence the recipient's conduct. It may be money, goods, rights in
action, property, preferment, privilege, emolument, objects of
value, advantage, or merely a promise to induce or influence the
action, vote, or influence of a person in an official or public
capacity.
Reasons why corruption and bribery exist
According to Van Der Walt et al, (1998) there are three reasons
for the existence of corruption and bribery, viz historical, social
and economic. On historical and social grounds, it is claimed that
human nature has fallen into a greedy and a selfish attitude of “me
first” which has given rise to a culture of corruption and bribery
(Ibid). For economic reasons, Van Der Walt et al, (1998) states that
“Economic principles create a climate for corruption and bribery;
the principles of exchange mean that people are paid for work they
do. If wages are low people will be ready to earn extra money
dishonestly to survive. Limited resources and practical shortages
force people to pay bribes to obtain things. As well as lack of an
open market means that a few in powerful positions can demand
payment for necessary commodities”. To be termed ‘corrupt’, an
action must satisfy two conditions. Firstly, the recipient of the
corrupting object or device must consciously be disposed
predictably to favour the interests of the benefactor. Secondly, the
corrupting object or device must be substantial enough to warrant
reasonable worry that the recipient will favour the interest of the
benefactor even when all else is equal (Vee and Skitmore, 2003).
The impact of corruption and fraud on Malawi economy remains
significant today. Every communication channel ranging from the
printed to electronic media at least, reports something about
corruption and fraud in the high offices of the land, parliament in
particular, down to the least businessman. The reports are eye-
catching and leave everybody wondering what happened to society
held dear by most citizens.

How Costly is Ethical Behavior?

Where giving bribes is a common practice in procuring contracts,
acompany that does not offer bribes will clearly be at a
disadvantage at least in the short term. It is likely to lose out to
less scrupulous competitors in the battle for contracts. Suppose
that such a company enunciates its policy clearly, and publicly
calls attention to the corrupt practices of its competitors. While
this would probably be counterproductive in the short run, the
result may be to build up good will among the forces in the country
that are fighting against corruption, Should those forces prevail,
then the honest company is likely to be rewarded. In the worst
case, it may be necessary to recognize that there are times when
one must choose between immediate self-interest and ethical
behavior. Where corruption is so rampant that it is not possible to
do business in an honest manner, then perhaps the most
appropriate response is simply to refrain from doing business in
that country. If this policy were widely adopted, then strong
pressure for reform would be a likely outcome.

The situation of individual engineers employed by companies

doing business in countries where bribery is rampant can be very
difficult. If their employers are among those engaged in corrupt
practices, they may be faced with agonizing dilemmas.
Participating in acts of bribery may be abhorrent to them on moral
grounds and may expose them to risks of legal prosecution and/or
censure by their professional societies. Refusing to participate
may jeopardize their careers within their companies. This is a
situation where support from their engineering societies could be
of great value.

EFFECTS OF CORRUPTION ON THE

CONSTRUCTION INDUSTRY
Anderson et - al 2006 Anti-corruption Transition 3, who is
succeeding and why, reported the construction industry accounts
for about one-third of gross capital formation. Governments have
major roles as clients, regulators, and owners of construction
companies. The industry is consistently ranked as one of the most
corrupt: large payments to gain or alter contracts and circumvent
regulations are common. The impact of corruption goes beyond
bribe payments to poor quality construction of infrastructure with
low economic returns alongside low funding for maintenance-and
this is where the major impact of corruption is felt. Regulation of
the sector is necessary, but simplicity, transparency, enforcement,
and a focus on the outcomes of poor construction are likely to have
a larger impact than voluminous but poorly enforced regulation of
the construction process. Where government is the client, attempts
to counter corruption need to begin at the level of planning and
budgeting. Output-based and community-driven approaches show
some promise as tools to reduce corruption. At the same time they
will need to be complimented by a range of other interventions
including publication of procurement documents, independent and
community oversight, physical audit, and public-private
anticorruption partnerships. Collusion and corruption impact
negatively on the economy as a whole, on the well being of the
industry and on its capacity to address development imperatives.
Corruption, according to Szeftel (1998), alters the character of
institutional performance in the context of administrative
efficiency; it 55 undermines managerial efficiency and the
redirection of resources from global policies to individual interests.
This creates serious problems of management. According to
MGDS (2006:62), Corruption retards economic growth and
development by diverting resources from socio-economic
development activities into coffers of a few. It discourages
legitimate business investment, and reduces the public resources
available for the delivery of public goods and services especially to
the poor. Despite efforts to curb corruption, cases of corruption are
still on the rise. The Anti-Corruption Bureau’s effectiveness is
hampered by inadequate human and financial capacity in addition
to the need for reviewing other related laws. One of the main
challenges in the medium term is, therefore, to ensure that
corruption and fraud prevention is improved while offenders face
the law. Construction is a $1.7 trillion industry worldwide,
amounting to between 5 and 7 percent of GDP in most countries. It
accounts for a significant part of global gross capital formation – a
little under one-third. The sector’s role in economic development is
undeniable –housing, roads, utility networks, schools and clinics
are all built assets. Because of construction’s central role in
development, corruption in the sector can be especially harmful. In
particular, corruption that leads to poor quality construction or this
supports an environment of poor project selection and insufficient
maintenance can significantly reduce the economic return to
investments, and carry high human costs in terms of injury and
death. And while there is an undoubted role for the government in
the sector both as customer and regulator, there is also a serious
concern with the capacity of many governments to adequately
fulfil these roles (Ibid)
PROBABLE SOLUTIONS TO BRIBERY,
CORRUPTION AND FRAUD
According to Shakantu (2003), corruption and fraud do not lend
themselves to an easy definition. Such acts cannot be understood in
isolation or as discrete phenomena. Since corrupt practice takes a
variety of forms each of which may be a by-product of
combination of factors, it is difficult to assign or prescribe a
sweeping solution. A general, prevalent situation calls for a general
explanation and a possible solution would seem to assume that
different forms of corruption and fraud are attributable to the same
cause and a general solution is available and desirable(Ibid). It
maybe that certain forms or levels of corruption are strongly
associated with particular projects, types of procurement system,
degrees of inequality, and methods of tendering or specific time
periods. Each of these variables is problematic and there is an
exception to every generalization. Accordingly, possible solutions
only can be proposed to the problems associated with corrupt
practices. The possible solutions lie in the implementation of
ethical guidelines and policies. However, the survey of Vee and
Skitmore (2001) revealed that even though the majority of
organizations had their own ethical codes of conduct and their
employees belonged to professional associations that promoted
good ethics, implementation of ethical codes of practice was often
difficult. Adoption of the World Economic Forum Anti-Corruption
Principles whereby an anti-corruption task force will develop anti-
corruption principles to guide companies that participate in
engineering and construction procurements around the world
(World Economic Forum, 2003), is a further possibility. Public
awareness campaigns and promotion of the Public Finance
Management Act which prescribes a code of conduct for public
servants intended to ensure proper control and accountability in
public finance, which forms a large part of construction financing
(Sangweni and Balia, 1999) may serve to enhance honesty and
ethics in the Public Sector.
Expanding the operations of the anti corruption bodies -
Corruption and Fraud Awareness Unit to investigate corrupt
practices should deliver positive results. However, this operation
must be adequately financed and properly equipped (TI, 2004).
Training of personnel, along with implementation of a code of
conduct and operational mechanisms to ensure compliance would
go a long way to achieving white collar crime prevention (Sigcau,
2000). The National Construction Industry Council benchmarks of
industry best practice should be applied to improve the
construction industry, combined with client performance and
appropriate human resource development will help to reduce
corruption and fraud (NCIC, 1999). Adoption of performance
specifications e.g. promotion of competition among construction
service providers would assist clients to control their construction
budgets, monitor actual costs incurred and restrict change orders
(Farren, 2003). As advocated by the World Bank, those found
guilty should be punished with ineligibility to compete for projects
for certain periods (Shakantu, 2003) Finally, corruption and fraud
is a felony. Offenders should be indicted and those found guilty
should be convicted (World Bank, 2003). The investigation of
corruption and fraud can be very expensive. Organisations and
individuals who have proactively established and implemented
corruption and fraud prevention measures usually find that those
measures pay gratifying dividends. While prosecution stimulates
unfavourable press coverage, any decision not to prosecute is cost-
effective strategy in the short term only.
In the long term, failure to prosecute sends a message to other
employees that corruption and fraud will be tolerated and that the
worst thing that can happen to perpetrators is termination of
employment (World Bank, 2003). Implementing an overall
corruption and fraud prevention programme, including a formal
corruption and fraud policy, will reduce corruption and fraud
losses. The thin line between profitability and red ink continues to
perplex management along with globalisation, cost cutting,
shrinking margins and related problems (World Bank, 2003).
Examples of fraud detailed in Appendix I by Economist.com
(2008), illustrate the seriousness of global bribery, and prove that
reports about fraud are not merely anecdotal hearsay but that it is
actually a serious problem which needs to be addressed.
Engineering bribery case
Engineering Contractor Sentenced to Prison for Bribery in
Macomb County Corruption Probe

A former civil engineering contractor in Macomb County, Paulin

Modi, 50, of Troy, Michigan, was sentenced today to twelve
months in prison followed by two years of supervised release
based on his conviction for conspiracy to commit bribery, United
States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Timothy R. Slater,

Special Agent in Charge of the Detroit Field Office of the Federal
Bureau of Investigation and Manny Muriel, Special Agent in
Charge of the Detroit Field Office of the Internal Revenue Service.

In September 2017, Modi pleaded guilty to conspiring to bribe

Steven Hohensee, who was then the Superintendent of the
Department of Public Works for Washington Township,
Michigan.  Modi paid multiple cash bribes amounting to $5,000 to
Hohensee in 2013 and 2014 in an effort to secure a $1 million per
year engineering contract between Modi’s company and
Washington Township.  In addition, Modi assisted two executives
from another engineering firm to pay a $2,000 bribe to Hohensee
with the hope of securing more business for this other engineering
firm.  Unbeknownst to Modi, Hohensee was cooperating with the
FBI at the time, and Hohensee recorded the bribe payment and
related discussions.  Modi also provided a $25,000 “loan” to
another Washington Township official in order to protect his
firm’s contract with the township.

After being confronted by the FBI back in 2015, Modi has worked
diligently to cooperate with the government’s investigation into
cooperation in Macomb County.  His sentence was reduced based
on that cooperation, including his June 2018 testimony at the trial
of Clinton Township Trustee Dean Reynolds.  Reynolds, who
failed to take responsibility for his actions and did not cooperate in
the investigation, was sentenced to 17 years in prison on February
6, 2019, based on his convictions for multiple conspiracies to
commit bribery. 

This case is part of the government’s wide-ranging corruption

investigation centered in Macomb County, Michigan.  The
investigation of this case was conducted by the Federal Bureau of
Investigation and the Internal Revenue Service.  The case is being
prosecuted by Assistant U.S. Attorneys David A. Gardey and R.
Michael Bullotta.
Wraith and Simpkins (1997) espouse the view that corruption is
essentially destructive of public interest. A consequence of
corruption is that it dramatically increases the cost of construction
by undermining competition. Goldstock (1990) points out that
corruption on residential projects means less middle- and low
income housing. Corruption on industrial and commercial projects
means higher commercial rents, and therefore higher costs of
goods and services. Ultimately the high cost of construction makes
investment in building unattractive. Corruption affects health and
welfare of people when it touches the quality of construction i.e.
when buildings fail to meet safety requirements and specifications
due to corruption and bribery in building materials and
workmanship or to bribery of public inspectors (Shakantu, 2003)
According to Sigcau (2000) collusion amongst Building Inspectors
brings the concept of monitoring into disrepute. Moreover, some
actions of Building Inspectors, such as delaying payments to
contractors and consultants, threaten the sustainability of the
construction industry and in particular, the development of
emerging contractors. In this regard, corruption undermines the
promise to deliver infrastructure and empowerment to any nation.
The bottom line of corrupt practices (collusion, money laundering,
price fixing and kickbacks in the construction industry) as
concluded by Farren (2003), is that construction costs increase and
owners and tenants are footing the bill. Sangweni and Balia (1999)
show that the general view of corruption by business in South
Africa is that it undermines health and competition, retards
economic development, deprives buyers of goods and services of
the real benefits of a healthy economy, and takes away the good
character of individuals and groups. Fluor Corporation’s Alan
Boeckmann (2003) summarizes the effects of corruption as
“having a corrosive impact on market opportunities and general
business climate. It deters investment, curbs economic growth and
sustainable development, distorts prices and undermines legal and
judicial systems
References
 Boeckmann, A. 2003. Engineering and Construction Industry Tackles Global
Corruption.
 China Daily, 2002. Guangzhou to Curb Corruption in the Construction Sector
 Humphreys, K.K. 1999. What Every Engineer Should Know About Ethics,
Marcel Dekker, Inc, New York.
 Farren, C.E. 2003. Ethics in the Construction Industry