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Chapter 12 - Project Misbehavior in Infrastructure Projects

Mega-Projects for Mega-Corruption

from Part II - Deviating from Plans

Published online by Cambridge University Press:  22 November 2025

Lavagnon A. Ika
Affiliation:
University of Ottawa
Jeffrey K. Pinto
Affiliation:
Pennsylvania State University
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Summary

This chapter employs a case study approach to explore two high-profile mega-projects, chosen for their global visibility and substantial negative impacts on Brazil’s economy and society. Initially heralded as catalysts for economic prosperity and national pride, these projects were later uncovered by police investigations to be deeply rooted in corruption. Analysis of public documents reveals that corruption was embedded from the inception of these mega-projects, with decisions driven by collusive, deliberate, and criminal intentions rather than mere ignorance. Empirical research on corruption and collusion in project management is scarce due to the clandestine nature of these activities and the challenges in data collection. Existing studies frequently rely on conceptual analyses rather than empirical evidence. The chapter introduces the concept of ‘mega-projects for mega-corruption’ to illustrate the extensive immorality involved and the role of the Malevolent Hand in facilitating corruption through strategic misrepresentation. By examining two cases involving oil refineries and soccer stadiums, the chapter underscores the necessity of robust mechanisms to combat corruption in project management. It aims to enhance practitioners’ awareness and emphasizes the need for empirical research and effective policies, such as establishing independent advisory bodies and implementing whistleblowing policies, to ensure accountability and protect public interests.

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