Oct 20, 2014 0
If your business carries out any kind of procurement processes, it automatically becomes exposed to different forms of fraud and corruption. While everyone says they have processes in place, very few organisations know how to implement the right measures and controls.
Clamping down on fraud and corruption in the procurement cycles of any organisation has to be viewed as “proactive” and not a reactive reflex.
Almost every survey conducted and statistical trend reported indicates that not only is the frequency of procurement fraud and corruption on the increase, but the quantum of losses is becoming significant enough to affect the sustainability of organisations.
- As a business owner, ask yourself the following questions.
- Is my organisation or business immune to fraud and corruption?
- Are we in a position to detect any fraud and corruption within the organisation?
- What measures can we put in place in order to prevent fraud and corruption?
- Is there enough transparency in the procurement processes to ensure no corruption can take place?
- What are the common procurement fraud “red flags”?
Detecting fraud and corruption should not be viewed as the responsibility of auditors, security and compliance personal. It is the responsibility of all the stakeholders of the organisation. How do we nurture this new mind set?
Expertise and professional advice is essential. Deloitte has specialists across many business models that can help with all aspects of this hot topic – “Preventing procurement fraud and corruption”.