Project Finance ...
The presence of financial crime in the delivery of infrastructure and major capital projects can take many forms; including falsely stating contractor hours, collusion in the bidding process (rigging) or the ‘straight forward’ payment of bribes to secure contracts. This impacts the final cost and quality of the delivery of the contract, and in the case of bribes, it is illegal and dramatically inflates the contract price.
The scale of the problem is significant. According to the Association of Certified Fraud Examiners (ACFE) 3.4% of reported fraud cases, over a two-year period up to December 2011, were in the construction industry. In the UK, the Chartered Institute of Loss Adjusters found that fraud in construction is prevalent to the tune of 10% of the industry’s revenues. Fraud is also widespread in Canada, India, France and Australia.
What is undeniable is that the direct cost of construction fraud impacts the customer’s and contractor’s growth and creates a negative impression in the eyes of stakeholders.
Tackling this issue must be a top priority for organisations. Maegus can make it manageable, particularly when managing the risks associated with capital projects.
For a percentage of the contract value Maegus can deliver the contract oversight, investigation, enforcement of penalties, capture recoveries and provide on-going practical guidance to mitigate financial risk.