Global Engineering and Construction Firms Adopt Anti-Corruption Principles

DAVOS, Switzerland (January 25, 2004) - In a move to combat global corruption within their own industry, 19 leading international engineering and construction (E&C) companies today signed and adopted a set of business principles for countering bribery, as part of the World Economic Forum's Annual Meeting at Davos. These 19 companies represent annual revenues in excess of 70 billion US dollars.

The principles are the product of a yearlong effort by the World Economic Forum's Governors for Engineering and Construction Task Force, working in close association with Transparency International and the Basel Institute on Governance.

The companies have committed to two fundamental actions - a "zero tolerance" policy on bribery and development of a practical and effective programme of internal systems and controls for implementing that policy. In practical terms, this will mean either implementing anti-bribery practices based on these E&C business principles or, for companies with established programmes, using the principles to benchmark existing practice.

"We believe the time is right for issuance of these E&C business principles and that their widespread adoption will raise standards across the industry, contributing to the goals of good governance and economic development," said Alan Boeckmann, Fluor Chairman and Chief Executive Officer, who chairs the multinational Engineering and Construction Task Force (see members below).

The group was established at last year's World Economic Forum Annual Meeting to develop anti-corruption principles for the global E&C industry.

"There is a moral imperative for our efforts," Boeckmann said. "Officials who take bribes steal from their own people - and not just money. Their actions distort government decisions, waste scarce resources and undermine public trust in political leaders and institutions."

"As for a business rationale, leaders in business as well as government are becoming much more aware of how corruption hurts economic progress and national development. This has a direct bearing on future business opportunities as well as the security of existing investments," said Jermyn Brooks, former Executive Director and CFO and current board member of Transparency International. "Strong anti-corruption policies within the E&C industry will promote the principles of transparency, accountability and responsibility for the long-term benefit of all stakeholders."

"Global concern and interest in fighting corruption is intensifying," Boeckmann said, "and our industry is pleased to join other major business sectors that have been working to develop industry-specific guidelines and practices for stamping out corruption. The companies signing today are from 15 nations around the globe. (A list of companies is attached.)

In 2004, the Engineering and Construction Task Force will work to increase the number of companies in the sector who formally commit to the E&C business principles and to develop more concrete guidance and practical tools for programme implementation. Implementation guidelines will address organizational responsibilities, treatment of subsidiaries and other related parties, training, audit controls and other standard elements for internal control.

The task force worked closely with Jermyn Brooks of Transparency International and with Professor Mark Pieth, a founding director and board member of the Basel Institute on Governance and chairman of the Organisation for Economic Co-operation and Development (OECD) Working Group on Bribery.

Note to Editors:

In addition to Alan Boeckmann of the United States, Engineering and Construction Task Force members include: Dinesh C. Paliwal, Group Executive Vice-President and Head of Automation Technologies Worldwide, ABB, Switzerland Sir Peter Mason, Chief Executive, Amec, United Kingdom Anthony Allum, Chairman, Halcrow Group, United Kingdom Michael Hilti, Chairman of the Board of Directors, Hilti Aktiengesellschaft, Liechtenstein Hans-Peter Keitel, Chairman of the Board and Chief Executive Officer, Hochtief, Germany Samer S. Khoury, Executive Vice-President, Operations, Consolidated Contractors Company, Greece Takeo Obayashi, Chairman, Obayashi Corporation, Japan Stuart Graham, President and Chief Executive Officer, Skanska, Sweden Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group, Canada

The 19 signatories are: Fouad Alghanim, Chairman and Chief Executive Officer, Fouad M.T. Alghanim & Sons Group, Kuwait Pius Baschera, Chief Executive Officer, Hilti AG, Liechtenstein Nicholas Billotti, President and Chief Executive Officer, Turner International, USA Alan Boeckmann, Chairman and Chief Executive Officer, Fluor Corporation, USA Brian Bruce, Chief Executive, Murray & Roberts Holdings, South Africa Stuart Graham, President and Chief Executive Officer, Skanska, Sweden Carl Grim, Chief Executive Officer, Aveng Limited, South Africa Gian-Maria Gros-Pietro, Chairman, Autostrade, Italy Samer Khoury, Executive Vice-President, Operations, Consolidated Contractors Company (CCC), Greece Samir Lahoud, Chairman, Lahoud Engineering, Lebanon Jacques Lamarre, President and Chief Executive Officer, SNC-Lavalin Group, Canada Nicolas Mariscal, Chairman of the Board, Marhnos, Mexico Takeo Obayashi, Chairman, Obayashi Corporation, Japan Dinesh Paliwal, Group Executive Vice-President and Head of Automation Technologies Worldwide, ABB, Switzerland Enrique Pescarmona, President, Corporacion Impsa, Argentina Ralph Peterson, Chairman, President and Chief Executive Officer, CH2M HILL Companies, USA Razali Abdul Rahman, Chairman, Peremba Group of Companies, Malaysia Peter Steiner, Chairman of the Board, Karl Steiner Holding, Switzerland Adrian White, Group Chairman, Biwater, United Kingdom

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