Fraud in Procurement: not as uncommon as you think

We have been reading a report on procurement fraud which states that XXX (the organisation) Risk Management Policy was seven years out of date and DOES NOT RECOGNISE PROCUREMENT AS AN AREA REQUIRING SPECIAL ATTENTION.



 XXX (the organisation) does not have adequate measures in place to prevent fraud and corruption in its procurement activities
 Mr XX (the offender) had corrupt relationships with business associates which enabled him to fraudulently obtain benefits for himself and others totalling $490,267.50 from projects he managed over a six year period
 Weaknesses in XXX financial controls and poor supervision of Mr XX underpinned his corrupt behaviour
 Mr XX maintained a covert relationship with an engineering consultant
 There were no written contracts between XXX and each consultant and contractor
 Mr XX circumvented his limited delegated authority
 Mr XX pleaded guilty to 10 counts of corruption and got four years imprisonment

If you are in a senior procurement position in your organisation please ask the question ‘What do we do to manage our procurement risks, including the potential for fraud? You could take a relatively low cost approach using Procurisk. You may be amazed that the above situation could arise BUT IT DID! Try Procurisk for free.

Please contact our Managing Director, Brian Farrington, if a confidential discussion would be helpful. In the first instance drop him an email to the email address shown below.

Dr Brian Farrington PhD MSc BSc (Econ) FCIPS
Managing Director
Brian Farrington Ltd
Rainford Hall
Crank
St Helens
Merseyside
WA11 7RP

Tel 01744 20698
Email: b.farrington@brianfarrington.com

www.brianfarrington.com
www.procurisk.com