Corruption scandals, investigations and prosecutions involving the construction industry in Latin America in the last few years have been widely reported. There is no shortage of information and opinions about what happened and who was involved. Similarly, there is no shortage of opinions on whether corruption in parts of Latin America is a permanent problem or one that can be fixed. The story is still being written and it will be some time before the scandals, investigations, prosecutions and political fallout subside and return to more “normal” levels.

These scandals have resulted in historically high fines against companies engaged in corruption, jail sentences for their executives, forced resignations, jail sentences and tragically even the suicide of one former president. While the frenzy of these corruption scandals continues, the development and construction of important infrastructure projects continue in most countries in Latin America, including in places impacted by corruption scandals. There is heightened awareness among government procurement officials, construction, politicians and the press, but there are also many that believe that corruption is “part of life” and that little can be done to stop it. Prospective foreign project participants must, therefore, weigh the anticipated gains, economic and otherwise, from taking advantage of such opportunities, against the risks of working in locations in Latin America where corruption has been shown to exist and where the opportunity to work without engaging in corruption is challenging.