What is procurement?
“Public procurement is the process of the acquisition, usually by means of a contractual arrangement after public competition, of goods, services, works and other supplies by the public service. The public procurement process spans the whole life cycle from initial conception and definition of the needs of the public service through to the end of the useful life of an asset or the end of a contract.” Source: NI Public Procurement Policy
Public procurement is vulnerable to fraud and corruption because of the level of expenditure, the volume of transactions, the complexity of the process and the number of stakeholders involved. Procurement fraud can only be tackled effectively if it is identified, measured and reported. Only by recognising the nature and level of procurement fraud can effective controls be put in place.
Common types of Procurement Fraud
- Bid rigging- common forms include;
– Bid rotation
– Bid suppression
– Complementary bidding
- Bribery
- Kickbacks
- Invoice fraud
- Collusion
- Manipulation of Bids
- Rigged specifications
- Product substitution
