Procurement fraud relates to purchasing goods, services or commissioning construction projects from third parties. Procurement is can involve bribery and corruption. Payments can be made for goods or services which were not delivered or are not specified on the order. Cartels can be formed in order to prevent best value for money being obtained when seeking tenders for goods or services.
Indicators to procurement fraud
Please note the following are just indicators and not a guarantee that a fraud is being committed, this list is not inclusive
- A council official in a position to award contracts receiving goods/services from contractors (this could include free meals, tickets for sporting events or holidays)
- Companies exaggerating their abilities, turnover and staff numbers when submitting tenders for contracts
- Less tenders are received for contracts than would be expected in the market conditions