Corruption in the Extractive Value Chain

Typology of Risks, Mitigation Measures and Incentives

image of Corruption in the Extractive Value Chain

One case of transnational corruption out of five occurs in the extractive sector according to the 2014 OECD Foreign Bribery Report. In this area, corruption has become increasingly complex and sophisticated affecting each stage of the extractive value chain with potential huge revenue losses for the public coffers. This report is intended to help policy makers, law enforcement officials and stakeholders strengthen prevention efforts at both the public and private levels, through improved understanding and enhanced awareness of corruption risk and mechanisms. It will help better tailoring responses to evolving corruption patterns and effectively countering adaptive strategies. The report also offers options to put a cost on corruption to make it less attractive at both the public and private levels.

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Corruption risks in revenue spending and social investment projects

OECD Development Centre

This chapter describes corruption risks associated with malpractices in public spending or social expenditure by private companies. It covers various areas including public procurement and investment, provision of fossil fuel subsidies, direct cash transfers, and social investment expenditures. It further offers recommended mitigation measures addressed to host governments, both at central and local level, donors and companies to minimise identified risks.


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