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Strengthening The Role of the Individual Engineer. COMBATING CORRUPTION  IN ENGINEERING AND CONSTRUCTION September 29, 2005. What is the problem?. World construction spending for 2004 = $3.9 trillion (USD) – ENR , January 10, 2005

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Strengthening The Role of the Individual Engineer

COMBATING CORRUPTION

 IN

ENGINEERING AND CONSTRUCTION

September 29, 2005


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What is the problem?

  • World construction spending for 2004 = $3.9 trillion (USD) – ENR, January 10, 2005

  • 10 percent +/- is lost to bribery and corruption – more than $390 billion (USD) annually!


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What has been done by others?

  • World Economic Forum Partnership Against Corruption Initiative (WEF PACI)

    • 60 +/- construction CEOs signed a “zero tolerance” declaration

  • FIDIC has developed a Business Integrity Management System (BIMS)

  • World Bank has a Hotline, publishes a blacklist & sanctions firms and individuals

  • Transparency International (TI) publishes a “corruption perception index” annually


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Why are we involved?

  • WEF & FIDIC represent firms

  • Corruption, fraud, and bribery are the result of bad decisions made by individuals

  • ASCE represents individual professional engineers and is looking to help our members


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This Report Goes Forward From the Task Committee on Global Principles for Professional Conduct - TCGPPC

  • TCGPPC has members appointed by ASCE President William (Bill) Henry P.E., F.ASCE, to represent broad geographic range and varied professional interests.


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Finnish Association of Civil Engineers (RIL)

National Council of Engineers and Scientists of France

The Association of German Engineers (VDI)

Ghana Institution of Engineers (GhIE)

Technical Chamber of Greece (TEE)

Hong Kong Institution of Engineers (HKIE)

Federation of Technical and Scientific Societies - Hungary (MTESZ)

Institution of Engineers, India (IEI)

Institution of Engineers of Ireland (IEI)

Israeli Society of Civil Engineers (ISCE)

National Council of Engineers, Italy (CNI)

Architectural Institute of Japan (AIJ)

Japan Society of Civil Engineers (JSCE)

Institution of Engineers of Kenya (IEK)

Korean Society of Civil Engineers (KSCE)

Kuwait Society of Engineers (KSE)

Order of Engineers and Architects, Lebanon (OEA)

Institution of Engineers, Malaysia (IEM)

Federation of Civil Engineering Associations of the Mexican Republic

Mongolian Association of Civil Engineers (MACE)

Society of Civil Engineers Nepal (SCEN)

The Royal Institution of Engineers KIVI NIRIA

Institution of Professional Engineers New Zealand

Norwegian Society of Chartered Engineers

Institution of Engineers, Pakistan (IEP)

Panamanian Society of Engineers and Architects

Association of Engineers of Peru (CIP)

Reporting to Leaders of the World's Cooperating Engineering Societies …ASCE Agreement of Cooperation Societies (67)

  • Philippine Institute of Civil Engineers (PICE)

  • Polish Society of Civil Engineers

  • Order of Engineers - Portugal

  • Russian Society of Civil Engineers (ROIS)

  • Slovak Association of Civil Engineers (SZSI)

  • South African Institution of Civil Engineers (SAICE)

  • Association of Civil Engineers - Spain (AIC)

  • Institution of Civil Engineers - Spain (CICCP)

  • Institution of Engineers, Sri Lanka (IESL)

  • Swedish Society of Civil and Structural Engineers

  • Swiss Society of Engineers and Architects (SIA)

  • Chinese Institute of Civil & Hydraulic Engineering

  • Institution of Engineers Tanzania (IET)

  • Engineering Institute of Thailand Under H.M. The King's Patronage (EIT)

  • Turkish Chamber of Civil Engineers (TCCE)

  • Institution of Structural Engineers (IStructE)

  • European Council of Civil Engineers (ECCE)

  • Institution of Civil Engineers (ICE)

  • Zimbabwe Institution of Engineers (ZIE)

  • Argentina Center of Engineers (CAI)

  • Argentina Federation of Civil Engineering (FADIC)

  • Institution of Engineers, Australia

  • Austrian Society of Engineers & Architects

  • Institution of Engineers, Bangladesh

  • Associacao Brasileira de Engenheiros Civis (ABENC)

  • Clube de Engenharia do Rio de Janeiro

  • Institute of Engineering, Brazil

  • Canadian Society for Civil Engineering

  • Institution of Engineers, Chile

  • China Civil Engineering Society (CCES)

  • Colombian Society of Engineers

  • Society of Civil Engineers of Costa Rica

  • Croatian Society of Civil Engineers

  • Chamber of Certified Engineers and Technician Czech Republic

  • Czech Institution of Structural & Civil Engineers

  • Danish Society of Civil Engineering

  • Association of Civil Engineers of Pichincha-Ecuador

  • Egyptian Society of Engineers (ESE)

  • Egyptian Society of Irrigation Engineers


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Reporting to Leaders of the ASCE’s International Groups and Sections

Sections (12)

  • Republic of Colombia Section

  • Egypt Section

  • Bangladesh Section

  • Hong Kong Section

  • India Section

  • Indonesia Section

  • Japan Section

  • Mexico Section

  • Panama Section

  • Saudi Arabia Section

  • Thailand Section

  • United Arab Emirates

Groups (14)

  • Brazil Group

  • India Group

  • Italy Group

  • Jordan Group

  • Kenya Group

  • South Korea Group

  • Lebanon Group

  • Nigeria Group

  • Pakistan Group

  • Philippines Group

  • Singapore Group

  • Taiwan (R.O.C) Group

  • Turkey Group

  • United Kingdom Group


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…And to Other U.S. and International Organizations

  • American Association of Engineering Societies

  • American Bar Association

  • American Council of Engineering Companies

  • American Indian Science and Engineering Society

  • American Institute of Architects

  • American Institute for Medical and Biological Engineering

  • American Institute of Mining, Metallurgical, and Petroleum Engineers

  • American Nuclear Society

  • American Public Works Association

  • American Society for Engineering Education

  • American Society of Mechanical Engineers

  • American Water Works Association

  • Associated General Contractors of America

  • Association for the Advancement of Cost Engineering International

  • National Action Council for Minorities in Engineering

  • National Institute for Health and Clinical Excellence

  • National Society of Professional Engineers

  • Society of Fire Protection Engineers

  • Society of Women Engineers

  • Tau Beta Pi

  • The Institute of Electrical and Electronics Engineers

  • Women in Engineering Programs & Advocates Network

  • International Federation of Consulting Engineers

  • World Federation of Engineering Organizations


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Task Committee Members

  • Robert A. Crist, Ph.D., P.E., Chair, VP Operations Black and Veatch

    • Arthur J. Fox Jr., F.ASCE, Past President ASCE; Editor Emeritus ENR

    • Patricia D. Galloway, P.E., Past President, ASCE

    • K. N. (Guna) Gunalan, Ph.D., P.E., Parsons Brinckerhoff

    • William (Bill) Henry, P.E., President, ASCE

    • Sunji Kusayanagi, Nippon Coei Co. Ltd., JAPAN

    • David G. Leverenz, Liaison to ASCE IAC, DMJM + Harris

    • Michael C. Loulakis, Esq., Attorney/Partner, Wickwire Gavin PC

    • Joe D. Manous, Jr., Ph.D., P.E., Liaison to CPP, U.S. Military Academy

    • Jose Sanjuan Medem, Ph.D, Past President, WFEO, SPAIN

    • Jorge Diaz Padilla, Ph.D, P.E, M.ASCE President FIDIC, MEXICO

    • Robert A. Rubin, P.E. Esq., Partner, Postner and Rubin

    • Jimmy H. Smith, Ph.D., P.E., F.ASCE, Director, NIEE

    • P. Kay Whitlock, P.E., VP, Christopher B. Burke Engineering Ltd.


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Corresponding Members

  • Richard O. Anderson, P.E., F.ASCE; President, Accreditation Board for Engineering and Technology (ABET)

  • Frederic Berger, M.ASCE, Senior VP, Louis Berger Group

  • Gamal Elsaeed, Ph.D., P.E., M.ASCE, Past ASCE Int’l Dir., EGYPT

  • Eva Beryl Huntsinger, P.E., M.ASCE

  • Russell Lefevre, Ph.D., VP, Institute of Electrical and Electronics Engineers

  • Gordon Masterton, BA MSc DIC CEng FICE FIStructE; VP, Institution of Civil Engineers (ICE), UK

  • Douglas Oakervee, OBE, FREng, CEng, FICE, FHKIE, Past Pres., ICE, UK

  • James W. Poirot, P.E., F.ASCE, Past Pres., ASCE, Chair Emeritus, CH2M-Hill

  • Bobby E. Price, Ph.D., P.E., F. ASCE, President, National Society of Professional Engineers (NSPE)

  • Jean-Michel Rendu, Representative of the American Institute of Mining, Metallurgical and Petroleum Engineers

  • Jaime Santamaria Serrano, F.ASCE, ASCE International Director

  • D.K. Sharma , D.Eng., P.E., Office of Market Oversight and Investigations

  • Reg I. Vachon, P.E., Past Pres., American Society of Mechanical Engineers

  • Robert C. Williams, P.E., Office of the United States Surgeon General

  • James G. Zack, Fluor Corporation, President Elect ,The Association for the Advancement of Cost Engineering International, (AACEI)


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What have we done?

  • Identified and charged an ASCE Task Committee on Global Principals of Professional Practice (TCGPPC) as a Presidential Initiative

    • TCGPPC is comprises of 14 distinguished engineers and lawyers backed by 14 corresponding members

    • Seven are engineering leaders from outside the U.S.

  • Launched initiative with workshop at the ASCE Annual Meeting in Baltimore, October 2004, with World Bank, TI, WEF, and leaders of engineering societies worldwide


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What have we done?

  • Met with leaders on organizational initiatives including WEF, TI, FIDIC, and the World Bank

  • Participated with the World Federation of Engineering Organizations (WFEO) as it incorporated combating fraud and corruption in its Declaration, Shanghai, November 2004

  • Collected professional practice information from cooperating societies and US organizations


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What have we done?

  • Completed a draft report for consideration by the global community in February 2005

  • Disseminated the draft report for review by the global community

    • 26 ASCE International Sections and Groups

    • 67 engineering societies around the world (ASCE AOCs)

    • 22 other engineering organizations and NGOs


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What have we done?

  • Obtained commitment from the Asian Civil Engineering Coordination Council (ACECC) to endorse

  • The President of the Pan American Academy of Engineers provided his personal endorsement, and translated the document into Spanish

  • Prepared a Commitment Statement approved by the ASCE Board of Direction

  • Obtained initial signatories for “Combating Corruption in Engineering and Construction – An Engineer’s Charter”


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What have we done?

  • Obtained review comments on the February 2005 draft report

  • Incorporated those comments into a set of:

    • I. Recommended Principles for Professional Conduct

    • II. Ethical Guidelines specific to corruption

  • The Recommended Principles and Ethical Guidelines have been disseminated for additional review


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A March 23, 2005, Draft Report has had the benefit of broad review, here are its basic recommendations:

I. Recommended Principles for Professional Conduct for All to Use

II. Ethical Guidelines More Specific to Corruption Proposed for ASCE’s Code


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I. Recommended Principles for Professional Conduct

Individual engineers can help fight crime and corruption in the engineering and construction industry worldwide by:

  • 1) Ensuring that they are not personally involved in any activity that will permit the abuse of power for private gain

  • 2) Recognizing that funds intended for projects for the benefit of mankind worldwide too often go into pockets of dishonest individuals.


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I. Recommended Principles….

Individual engineers can help fight crime and corruption in the engineering and construction industry worldwide by:

  • 3) Understanding that corruption occurs in both the public and private sectors, in both the procurement and execution of projects, and among both employers and employees.

  • 4) Refusing to condone or ignore corruption, bribery, or extortion; or payments for favors.


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I. Recommended Principles….

Individual engineers can help fight crime and corruption in the engineering and construction industry worldwide by:

  • 5) Urging professional engineering societies to adopt enforceable guidelines to ethical professional practice.

  • 6) Enforcing anti-corruption guidelines by reporting infractions by members or non-members of the engineering profession.


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II. Ethical Guidelines More Specific to Corruption – Proposed for ASCE’s Code

TCGPPC offers,  as a model for others, proposed new Guidelines which it has forwarded to the ASCE Committee on Professional Practice (CPP) and Committee on Profesional Conduct (CPC) as a recommended new Canon 6 for the ASCE Code of Ethics.


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II. Ethical Guidelines…

  • Engineers shall uphold and advance the integrity, honor and dignity of the engineering profession, and shall promote the most effective use of financial resources through honest and impartial service and fidelity to the public, employers, associates and clients.

  • Engineers shall be scrupulously honest in their control and spending of monies intended for the projects on which they work.

  • Engineers shall adopt a zero-tolerance approach for bribery, fraud, deception and corruption in any design or construction work in which they are engaged.


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II. Ethical Guidelines…

  • Engineers should be especially vigilant in countries where payment of gratuities and/or bribery are tolerated and condoned practices.

  • Engineers should include certifications in all contract documents specifying zero tolerance of bribery, extortion or other fraud during the procurement and execution of the project.


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II. Ethical Guidelines…

  • Engineers must strive for complete transparency in the engagement of agents who facilitate projects and other work, to include the reporting of purposes, names, addresses, and gratuities and commissions paid for all agents in their employ.

  • Engineers shall be duty-bound by the ASCE bylaws to report any observed violations of the Society's Code of Ethics.


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Work of TCGPPC Will Continue Into 2006

  • Communicating the Principles for Professional Practice fort consideration by all of the world's engineering and construction organizations.

  • Seeking adoption of the Principles by societies with individual members anxious to join the fight against corruption in engineering and construction.

  • Urging adoption of the proposed amendment to ASCE's Code of Ethics - Canon 6 and its Guidelines.


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Work Will Continue Into 2006…

  • Suggesting adoption of guidelines by engineering and professional societies worldwide with codes of ethics.

  • Studying the use of hotlines (World Bank model) and other reporting systems that encourage and protect whistleblowers.

  • Seeking adoption of proposed Principles by industry – contractors, architects and other engineers.


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Opportunities for Immediate Progress …

  • An organized  anti-corruption effort can start right now and eventually enlist many millions of individual engineers throughout the world.

  • It can start with adoption of the Principles and guidelines by the cooperating societies that helped draft them.

  • It can grow with leadership of all interested societies informing their members of  the Principles and guidelines for consideration and future adoption.


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Opportunities…

  • Many representatives of cooperating societies will be in Los Angeles at the opening, plenary session of ASCE's 2005 Annual Conference October 27, 2005.

  • TCGPPC will sponsor a morning-long discussion of progress to date, followed by an afternoon session concentrating on next steps.

  • Some will attend these sessions already in support of the anti-corruption effort; others will come seeking answers to questions about the effort.  


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Opportunities…

  • It is hoped that most will go forth from the Los Angeles conference as signatories of an Engineer’s Charter, an accord  pledging cooperation in combating corruption in engineering and construction.

  • The Engineer’s Charter urges adoption of the Principles and consideration of  the appropriate guidelines.


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Next Steps…..

  • Be a signatory to “Combating Corruption in Engineering and Construction – An Engineer’s Charter”.


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