Corruption in the Construction Industry in Ranau, Sabah: An Exploratory Study of Perceived Causes, Effects, and Preventive Strategies

Abstract

Corruption within the construction industry poses a persistent challenge to project performance, public trust, and governance integrity in Malaysia. This study investigates the causes, effects, and preventive strategies associated with corrupt practices among contractors registered with the Construction Industry Development Board (CIDB) in Ranau, Sabah, a district characterised by rapid infrastructure growth but limited empirical scrutiny of this issue. Grounded in the Opportunity-Motivation-Rationalisation (OMR) framework, the study employed a quantitative survey design involving 217 CIDB-registered contractors across grades G1 to G7, selected through purposive and snowball sampling. Data were analysed using descriptive statistics, Cronbach's alpha reliability coefficients, and the Relative Importance Index (RII). Findings indicate that structural and institutional factors, specifically ineffective internal controls and weak enforcement of anti-corruption legislation, are perceived as the most critical causes of corruption (RII = 0.73). Quality deterioration, financial instability, and safety standard compromise are identified as the most severe consequences (RII = 0.74). Regulatory oversight, penalty enforcement, and systematic project auditing are ranked as the highest-priority preventive measures (RII = 0.74). These findings are consistent with the OMR proposition that opportunity-enabling conditions, combined with weak institutional oversight, function as the primary driver of corruption. Practical implications are directed towards CIDB Malaysia, the Malaysian Anti-Corruption Commission (MACC), and the Sabah Public Works Department (JKR Sabah) as key institutional actors responsible for translating these findings into targeted policy action.