Public Inquiry Reports In The Construction Industry
...Cover Page
1. Introduction
2. The Dutch construction fraud
3. Royal BAM Group and the Dutch construction fraud
4. Advice
1. Introduction
In the first part of this paper there will be a short explanation of the construction fraud and the relevant stakeholders involved. In the second part the relevant changes, interests and strategies will be described for Royal BAM Group. At the end of this paper an advice will be given to Royal BAM Group to solve problems related to the cultural change process.
2. The Dutch construction fraud
At the end of 2001 former director of a construction company, Ad Bos, reveals an shadow account keeping practices. After his confession a lot of fraud cases in the construction industry are broad to light. The construction companies secretly agreed to overcharge their customers on a large scale. The extra profit that was being created this way was shared among the construction companies. This overcharging led up from thousands up to hundreds of thousands euros for a project. After investigations by the Dutch government, the Dutch cartelization prevention (NMa) and a public inquiry it is estimated that a proximately thirteen hundred construction companies participated in this fraud over a period from 1992 till 2001. The relevant stakeholders during this fraud and during the prosecution of the construction companies are: the Dutch government, the NMa, the whistle-blowers (Mintzberg, 1984) and the construction companies.
The Dutch Government is affected by this fraud in different ways. First of all it is damaged as a client of the construction companies. During the fraud, construction projects that were being done for the government have been overcharged too. Secondly the Dutch government, as a protector of the Dutch citizens, should have...
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