Even if we see that the requirement is genuine, and the supplier is genuine, fraud can take place where the nature of what is supplied – quality, quantity, specification – is not as contracted for. So a lower-value product is substituted if we are talking about goods. Or in the case of services, it may be the quantity that is the heart of the fraud. Perhaps the most difficult procurement fraud to detect would be a budget holder and a professional services supplier in collusion, with the budget holder signing off that 20 days of consulting or contingent labour services were provided when really it was only 15. This is very difficult to detect; but some additional checks on what has really been received, obviously involving more than just the single budget holder, provides some protection here.
Procurement Fraud Part 4 – Six Anti-Fraud Principles [Plus+]
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