Male commit nearly three-quarters of the offences.
Median losses caused men are nearly four times those caused by women.
Indicators Of Potential Tendering Fraudster
Economic Stress
Family illness
Divorce
Family unemployment
High Debt
Financial losses
Pressure of the world
Life Style
Living beyond means
Possible alcohol or drug problems
Gambling
Work Habit
Excessive overtime
No vacations
Excessive sick or vacation leave taken
Avoids or is too friendly to employees
Secretiveness or defensiveness
Turning down promotions or transfers
Avoidance by other employees
Officer’s pressure to show good results
Job cutbacks or down sizing
Attitude
Job dissatisfaction/unhappy employees
Feeling underpaid
Unappreciated
Greed
Opportunities Behavior
Close association Suppliers/customers
Loose oversight to authorizations
Lack of controls
Independent review
Too much trust / independence
Interesting Traits
Men commit nearly three-quarters of the offences.
Median losses caused men are nearly four times those caused by women.
Losses caused by managers are four time those caused by employees.
Median losses caused by executives are 16 time those of their employees.
(Extracts from research by association of certified fraud Examiners, U.K)
Summary
A major reason why people commit procurement fraud is because they are allowed to do so. There area wide range of threats facing government agencies the threat of fraud can come from inside or outside the department, but the likelihood that a fraud will be committed will be greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must to be establish a comprehensive system of control which increases the likelihood of detection and increase the cost to the fraudster.
It has been said that there are three requirements which need to be met to reduce the risk of procurement fraud; Good Ethics, Good People, Good System.
Dr.Irfan Ahmad is the Chief Editor of www.tenderserviceonline.com and CEO Tender Service Pakistan.He has twenty years of experience in providing tender information services to the clients. He has written two books on tendering by the name of "Managing Tender Business" and "Combating Procurement Frauds"
