2. typers of corruption in the water sector
2.1 Water supply and sanitation sector Most cases of corruption in the water sector that have been documented are related to the drinking water and sanitation sector. Drinking water is a basic need and has no alternatives, and proper sanitation is of fundamental importance for individual and public health. The lack of adequate services in this sector therefore can be deadly. As many as five million children and adults die each year because of lack of drinking water and proper sanitation facilities (UNDP, 2002). This subsector has high risks of corruption because of monopoly positions of the providers and the large sums of money involved in investments, rehabilitation and operation and maintenance (Plummer and Cross, 2006; Shordt et al., 2006). Davis (2004) provides a detailed account of the systematic character of corruption in the public water and sanitation sector in India and Pakistan. Three main forms of corruption found were bribery related to water meter reading and illegal connections; collusion in contract bidding; and a market for job transfers. Contractors told Davis that prices were inflated by 15 percent due to collusion (p. 57). The construction of water works can yield considerable amounts of illegal revenue to politicians and officials; thus water scarcity might be artificially maintained or worsened. For example, Giglioli and Swyngedouw (2008) show that it was in national and local political interest to first worsen a water crisis in Sicily, Italy, in 2002 so that revenue could be made through private tanker provision and public support increased for the building of new infrastructure to be inaugurated by senior politicians. Box 2 provides a list of some types of corruption that can be found in the drinking water and sanitation sector. This list is not exhaustive. See also de la Harpe and Butterworth (2009) and Butterworth and de la Harpe (2009a) for descriptions of corruption risks in the water sector. Box 2. Summary of types of corruption in the drinking water and sanitation sector n Collusion
(kickbacks or bid-rigging) and extortion in the procurement procedures for construction and maintenance works
n
Collusion during the quality control of construction and rehabilitation of water infrastructure works
n
Unwarranted contract variations and re-negotiations
n
Capture of profitable contracts and (re)negotiations by private companies for water concessions
n
Embezzlement of government and foreign aid funds and assets
n
Bribery of utility officials to evade water fee payments or allow illegal connections
n
Political mismanagement of municipality utilities to win votes with low tariffs
n
Nepotism and kickbacks in the appointment and promotion to lucrative positions
n
Officials profiting from giving ‘licenses’ to informal water providers
n
Central and/or local level elite capture of water provision services and committees
20 Fighting Corruption in the Water Sector: Methods, Tools and Good Practices