IRAQ: Massive reconstruction efforts in Iraq and in tsunami-hit South-East Asia are likely to become history's greatest construction scandals, according to a new report on corruption.
The anti-corruption NGO Transparency International (TI) also criticised US procedures for awarding construction contracts in post-war Iraq.
"Without a systematic commitment to transparency in the reconstruction process, Iraq is at risk of becoming the biggest corruption scandal in history. The consequences for ordinary people will be immense and long-lasting," said Peter Eigen, chairman of Transparency International. "Transparency must also be the watchword as donors pledge massive sums for reconstruction in the countries affected by the Asian tsunami."
The report said there was evidence of high levels of corruption in the reconstruction projects in Iraq and it urged the new Iraqi government, coalition forces and foreign donors to be more aggressive in combating corruption.
The organisation called for a binding anti-corruption code of conduct for foreign contractors and greater transparency in the management of Iraq's oil reserves and revenues. "Strong and immediate measures must be taken to address corruption before the real spending on reconstruction starts," it stated.
The report suggests that the corruption which characterised the regime of Saddam Hussein has persisted since the dictator was toppled two years ago.
Transparency International's report adds to international criticism of the secretive way in which Washington has awarded public construction contracts in Iraq to a small number of companies, including Halliburton, once headed by vice-president Dick Cheney. It added: "In its procurement strategies, the US has been a poor role model in how to keep corrupt practices at bay."
TI estimates that global corruption carries an annual price tag of €2,384 billion.
This year's report focuses on corruption in the construction industry and the resulting poor-quality infrastructure around the world. This infrastructure is often vulnerable to natural disasters, as a result of bribes paid to safety officials, and eventually costs lives.
Earthquakes have claimed 150,000 lives in the past 15 years, the report says, but it adds: "Earthquakes don't kill people; collapsing buildings do."
"Corrupt contracting processes leave developing countries saddled with sub-standard infrastructure and excessive debt," said Mr Eigen. "Corruption does not just line the pockets of political and business elites, it leaves ordinary people without essential services and deprives them of access to sanitation and housing."
TI was set up in 1993 and opened its Irish chapter three months ago. Irish officials refuted suggestions yesterday that Ireland's debut in the report meant that the country was more corrupt.