EFFECTS OF FRAUD AND CORRUPTION ON CONSTRUCTION PROJECTS DELIVERY IN OSUN STATE, NIGERIA

Abstract

This research was undertaken with a view to find out the Effects of fraud and corrupt practices in Osun State construction projects delivery. The various fraud and corrupt practices that existed in Osun State construction projects delivery were identified and the stages of construction projects where corruption and fraud took place were identified. The causes of fraud and corruption in Osun State construction projects were examined and the challenges faced by the clients in project delivery were assessed. The study was carried out in Osun State, Nigeria. The population for the study comprised the professionals from Ministry of works, contractors, and stakeholders from built environment that is, the professionals from the three senatorial districts in Osun State. A total number of one hundred (100) copies of questionnaire were distributed to the selected Local Governments Areas under the three Senatorial districts in the state. Thirty (30) copies of questionnaire were distributed to Osun West, forty (40) copies of questionnaire to Osun Central and thirty (30) copies of questionnaire to Osun East to professionals from ministry of works; contractors and the stakeholders from built environments. Eighty (80) copies of questionnaires were returned (80%). The data collected was analyzed using descriptive and inferential statistics (frequency, percentage and Analysis of variance). The study identified six prevalent corrupt practices in Osun State construction projects as; politics in award of contracts/ god fatherism (4.50), use of substandard materials by the contractors (4.10), bribery to obtain contract (4.09), payment or gift to inspectors to approve poor quality materials and works (3.86) and poor workmanship (3.65), These corrupt practices were common virtually at every stage of the projects. The causes of these corrupt practices were examined as; quackery (4.09), professional indiscipline (4.08) and inordinate desire for wealth (4.03). The effects of fraud and corrupt practices were assessed as slowing of economic growth (4.08), diversion of developmental resources for private gain (3.84) and low quality of construction projects (3.78). The study recommended that contract should follow due process as outlined in the public procurement act and not politicized, and contract be given only to construction professionals who have reputation to protect.