fraud Content

Procurement Fraud Part 4 – Six Anti-Fraud Principles [Plus+]

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 3 – Six Anti-Fraud Principles [Plus+]

While there are a wide variety of frauds, as we described in our last part of the series, there are a relatively small number of key principles that, if understood and acted upon properly, can make fraud at least more difficult. (Keep in mind though: it is never impossible)! Some of the principles can also make it more likely that fraud is detected, even if it hasn’t been cut off at the source. As we said previously, fraud relies on extracting money from the organisation, either in return for nothing, or in return for less value than the money justifies. So the basic counter-fraud principles must be around controlling the flow of money out of the organisation, and ensuring that full value has been obtained for that money.

Procurement-Related Fraud – on the rise? (Part 2) [Plus+]

Like so many things in life, the simplest advice is to follow the money. Ultimately, procurement-related fraud is about getting money from the organisation without proper justification. The procurement aspect of our analysis means we’re interested in cases where there is some link with third-party supply of goods or services, although as we saw in part one, it does not actually have to involve a third party at all.

Procurement-Related Fraud – on the rise? (Part 1) [Plus+]

One recent case (that we might define as a classic of its genre) saw the head potato buyer of Sainsburys (the UK’s second or third-largest supermarket chain), colluding with senior staff at a potato supplier. The buyer paid over the odds for the potatoes and the extra income went into a slush fund managed by the supplier, which was used to pay the buyer via both pure cash and through trips to expensive hotels and similar. In another example, we heard of MOD staff tipping off a favoured supplier and providing them with confidential information to help them win contracts in return for payments received from that supplier.