Rejecting the scourge of corruption

15
Rejecting the scourge of corruption kpmg.com/insightmagazine #inframorality

Transcript of Rejecting the scourge of corruption

Page 1: Rejecting the scourge of corruption

Rejecting the scourge of corruption

kpmg.com/insightmagazine

#inframorality

Page 2: Rejecting the scourge of corruption

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

As major corruption scandals continue to emerge around the world, it has become increasingly clear that society is rejecting the scourge of corruption

Page 3: Rejecting the scourge of corruption

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

The big question now is whether governments, infrastructure procurers and providers will seize this opportunity and public momentum to stamp out corruption in all its forms

Page 4: Rejecting the scourge of corruption

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Corruption is everybody’s problem

EUR 120 billion is lost to corruption

each year across the

27 EU member states

Source: EU Commissioner for Home Affairs (figures are approximations)

Page 5: Rejecting the scourge of corruption

Corruption is everybody’s problem

EUR 120 billion is lost to corruption

each year across the

27 EU member states

USD 1.26 trillionis stolen from the

developing markets

each year

In the developing

world, the damage is

even more dramatic:

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Source: EU Commissioner for Home Affairs (figures are approximations)

Page 6: Rejecting the scourge of corruption

Corruption has a direct impact on infrastructure

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 7: Rejecting the scourge of corruption

Nearly 30% of the value of publicly funded construction projects are lost to corruption around the world

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Corruption has a direct impact on infrastructure

Page 8: Rejecting the scourge of corruption

Public discourse on corruption is clearly shifting and gaining voice

The anticorruption movement picks up steam

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 9: Rejecting the scourge of corruption

In key markets such as Brazil, China and India, governments have made anticorruption a key priority

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 10: Rejecting the scourge of corruption

Based on the recent Anticorruption Summit

held by Transparency International in London

all signs indicate:

governments, companies, and civil societyare starting to demand more action to meet the challenges posed

by corruption

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 11: Rejecting the scourge of corruption

The result: an Anticorruption Manifesto providing clear proposals and the commitments made

by governments

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 12: Rejecting the scourge of corruption

The growing drive to bring private sector investment into infrastructure is

also showing positive impact.

It has often led to:

Greater transparency, robust project due diligence and oversight

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 13: Rejecting the scourge of corruption

Time to act Governments should be redoubling their efforts to remove

any opportunity for corruption in the infrastructure sector

across the life-cycle

Procurement

FinancingManagement

Operations

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality

Page 14: Rejecting the scourge of corruption

spotting signs of corruption

Companies and investors should also be

sharpening their focus on

walk away from projectsand be willing to

to protect their investments and reputations

© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine / #inframorality