The report released yesterday portrayed the worldwide corruption scenario with particular focus on the corruption in the construction sector that undermines economic development and threatens to hamstring people all over the world.

This report, however, is not for publishing the index of corruption rating. Bangladesh ranked 145 among 146 nations in TI's 2004 corruption rating.

The report also highlights the urgent need for governments to ensure transparency in public spending and for multinational companies to stop bribing at home and abroad.

In the Bangladesh chapter, the report said, "An anti-corruption commission was created in Bangladesh in 2004 to replace the discredited anti-corruption bureau. The commission has wide-ranging investigative powers, but its autonomy is limited."

"The commissioner is appointed by the president and the government controls its budget. New procurement regulations that promote transparency and accountability were introduced at the ministry of planning, but, significantly, exceptions are allowed on matters of state security, including military spending," the report added.

"Corruption in large-scale public projects is a daunting obstacle to sustainable development," said Peter Eigen, chairman of TI while launching the report.

"Corruption in procurement plagues both developed and developing countries," Eigen said adding, "The unfolding scandal surrounding the UN sponsored oil-for-food programme in Iraq highlights the urgent need for strict conflict-of-interest rules and transparent and open bidding processes."

The report says the global cost of corruption is around US$3,200 billion per year in the global construction market. It cited examples of such corruption in Argentina, Paraguay, Indonesia, Malaysia, the Philippines and Uganda.

The TI observes that corruption in the construction sector not only plunders economies, it shapes them and also ravages the environment and creates social hazards.

In the Asia/Pacific chapter, the report says corruption in elections was a concern in several countries in this region. At national elections in Cambodia, Indonesia, there were reports of widespread vote buying, violence and intimidation by all contesting parties.

Independent monitoring of election in Sri Lanka uncovered a multitude of irregularities in the April 2004 ballot, including the abuse of state resources -- particularly state media -- for campaign purposes. The report also found widespread corruption in the judiciary.

About India, the report says the state parliamentary elections in November 2003 provided the first extensive test of a requirement for all candidates contesting elections to declare their educational levels, criminal records, assets and financial liabilities.

TI recommended the governments of the countries to take initiatives to prevent corruption and asked the country leaders to follow the minimal instructions, which includes a series of risk assessments, action plans and anti-corruption tools.