Services
Procurement Fraud Investigation
Organisations should watch out for one or more of the following trends in Procurement system
Ron Weber
“If it’s too good to be true, it’s probably a fraud”
Trends
- Inflation of budget for Procurement
- Same vendor appearing consistently on award recommendation in a competitive market
- Materials/services being procured which are not required
- Over-priced contracts/ repetitive payments/fake invoice
- Conflict of interest (COI) situations arising too often in Procurement process
If any one of the above happens more than once, the possibility of bid rigging, bid splitting, favoring a supplier and use of kickbacks/bribe by suppliers must be explored.
Costmap experts offer just the solution your organisation needs in such a situation. With decades of experience behind them in dealing with similar incidents, they usually take the following approach:
Step 1
- Understand the existing processes, systems and controls in the Procurement process
- Understand the vendor selection process especially the tender/bid evaluation procedures
- Development of detailed investigation plan
Step 2
- Data analysis and review of documents related to the incident
- Ascertain the extent/boundary of individual(s) involved
- Determine internal and external collaboration
- Gather disk image/computer records of the individual falling within the periphery
- Conduct discreet market intelligence; if considered necessary
- Interviews with concerned individuals
Step 3
- Identification of fraud and the modus operandi
- Establish the people include the key players/beneficiaries/tools
- Development and issuance of report with detailed findings