The United Nations adopted the 2003 Convention Against Corruption to reduce corruption in developing nations. Corruption’s determinants include political systems’ permeability to economic influence, state economic intervention, weak political competition and officials’ discretionary power to allocate resources. Corruption’s outcomes are slowed economic development, misallocation of government resources, income inequalities and, less frequently, disasters. Using archival and interview data, this article documents corruption’s shaping of the 2006 sinking of an Egyptian ferry in the Red Sea, which killed 1034; high-level corruption not only caused the disaster but exacerbated its impacts. The study’s findings confirm much of the empirical literature but contradict assertions that corruption is associated with high levels of government intervention in the economy. Based on the findings, the article gives a critique of neoliberal reform that associates it with high-level corruption.